BENGALURU: Coming from a small town to a big city like Bengaluru has its perks, but can be challenging, especially in regard to managing one's expenses. Youngsters under the age of 30 from varied backgrounds have been seeking financial advice and getting educated on maintaining their monthly expenditure. Financial planning is a concern for the youngsters, with 30,000 calls received on a monthly basis, according to IndianMoney.com.
Anjana (name changed), shifted to Bengaluru eight months ago from Bihar after completing her degree in media studies, and is now working with an ad agency, making less than ` 27,000 a month. Struggling to make ends meet in the city, Anjana decided to seek financial advice on how to manage her expenses, as well as create some form of savings. "Managing expenses in the city is not easy, and I wasn't able to save anything in my first three months of working," says the 22-year-old.
However, after receiving some financial education six months ago on handling food, rent and shopping expenses, Anjana has been able to save around ` 5,000 from her monthly salary. "When you are new and come to big city such as Bengaluru, managing expenses is very important, especially since I used to eat out at least twice a day," she says about saving for an emergency. She also plans on continuing her financial education and take a loan in the near future for doing her masters.
Another young 24-year-old accountant, Shreya Sharma (name changed), has been in Bengaluru for the past two years. Being a shopaholic, she decided to control her habit of shopping six months ago, saving upto `15,000 rupees compared to `5,000 previously. "Although I'm still a shopaholic, there is a relief knowing that some chunk of money is going to my savings," she says.
CS Sudheer, founder of the company, says that youngsters face a lot of pressure from their families and society, as there is dependency on parents, pressure to buy houses and cars, and a need to save in case of losing one's job. "Customers have no clue about health insurance or term insurance, and they fall into financial difficulties when their parents fall sick," says Sudheer.
Another cause for the increase in financial planning is awareness due to digitisation, where youth now have more options that are easily accessible. "Earlier, we had to call and make an appointment, sit and discuss at banks. Through financial education, clients are able to understand the language required to sustain the overall health of your finances," he adds.
According to Sudheer, since youngsters do not have a habit of saving, they are distracted by the various attractions in the city, adding that risk planning and investment planning are necessities among the youth.
Tips on financial planning:
1. Savings must be done at the beginning of the month.
2. Control your spending - For example, when we go shopping, we should make a list of things we need, rather than things we want.
3. Have one account with an ATM card and one without a card.
4. Don't invest for obligations - invest because you need it and evaluate all your options.
5. Know the difference between a good loan and a bad loan and do your research. Don't be in a hurry to be expensive items such as cars.