May 27, 2025
By: Vidhi Verma, ET OnlineYour 20s are the best time to set the stage for lifelong financial success. Here are 7 practical money moves every young Indian should make to grow wealth early.
Begin investing as soon as you earn. Even a Rs5,000 monthly SIP from age 22 can grow to over Rs2 crore by age 60 at a 12% return.
Save at least 3–6 months’ living expenses in a liquid or savings account to cushion against job loss or medical emergencies.
Investing small amounts regularly builds financial discipline. Choose equity mutual funds with a long-term horizon.
Follow the 50-30-20 rule: 50% for needs, 30% for wants, and 20% for savings and investments.
Term plans offer high cover at low premiums — don’t mix insurance with investment.
Don’t let higher salaries lead to higher spending. Keep expenses in check and increase your investment contributions instead.
Use money for courses, skills, or side hustles. Growth in income often beats returns from any asset class in your 20s.
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