BENGALURU: As soon as youngsters join the workforce, they fall into many traps including loans and short-term gains. Krishan Mishra, CEO, FPSB (Financial Planning Standards Board) India, who was in Bengaluru recently, told TNIE that once youngsters receive a credit card, they start spending money.
“Easy money leads to easy spending. People get tempted to spend the money without understanding the repercussions. If you are not prudent enough to handle your credit card, then it can become a challenge for you to manage,” he said.
FPSB is the global leader in the financial planning profession, and Mishra stressed on the need to approach certified financial planners. “Never spend more than what you earn otherwise you will never be able to repay. In fact, 30% of your regular income is the maximum you should spend. Do not fall into the trap of loans immediately, start thinking about investments in the initial years of your life. If you start saving and investing right from the initial years, you will be able to handle a lot of things,” he said, stressing on the need to create an emergency/contingency fund.
He added that youngsters should never look at short-term gains.
“Youngsters feel that if I invest today, can I make 40% or 60% in 30 days. There are many fraudulent offers in the market and do not get into their trap. Never buy a product which is not legalised by our regulator. Markets are not meant for everyone. Am I the right fit for the market? Am I looking for a long-term or short- term gain? If people are focused on short-term, they should not go to a certified financial planner,” he said.