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[Music] this weekend i organize an online meet with my friends and their friends to discuss and understand one thing that we normally don't talk about that is how much money do they have as usual as soon as i asked the question some of the people's face went wide some of their internet connection got lost some just froze saying there is a lag even though for some reason they were still blinking normally awkward movement stayed for next few minutes where i kept giving them instructions on how to fix the internet even though the whole while frozen person kept moving his eyes and even once his mom walked past from behind but for the effort of the person i did not confront him on that we all at one point in our life have reacted in such way when it comes to the topic of money the thing that i wanted to know was that how much money you should have according to your age and am i on the right path of course it totally depends on your lifestyle and what are your aspirations for your money and some of the factors too but still i was curious to get at least some ballpark number i went through many reports and researchers but couldn't really find much about india mostly they were from us uk canada and australia but nothing much from india so today in the episode of my money universe let's see what you should be having according to your age and not just money but also what other financial steps you should have taken care of by that age 25 year old as 25 year old you have some experience about job and salary by now yes your salary is very less and you are constantly complaining about it but that's how it works so for 25 year old person by now you should be having your 4 month of salary in savings that means if you are earning 30 000 per month then you should have saved 1.2 lakh by now one of the things that you need to do is to stop wasting your money in so called upgrading your life that new iphone is not going to enhance your life and buying new shoes again and again does not mean you are doing well in your life just because you recently started having some money is not a good excuse to spend it all make sure that you save yourself from becoming one of those people who find validation that they are doing good in their life by buying expensive stuff so make budget as early as it sounds right now i know what you're thinking but my salary is so low how can i feed myself and still save but let me tell you that this is how you gonna feel in every stage of your life first low salary then car and house and then kids you will basically never feel like you have enough to save and that's a very common phenomena among humans twenties is not only your starting a financial journey but also the very foundation of how you gonna be living your life so good habits need to be build up now so what are the other things that you need to have in place as 25 year old insurance yes can i sound any more like your dad but remember at 25 you are setting up the base of your financial life and insurance is must if something happens to you then insurance money will take care of your loved ones and also of yours if in need and these insurances are very cheap you can check out the third chapter of my financial independence playlist to know everything about insurance after insurance you need to make sure that you also have your sips going on even if it's just 500 rupees per month start it now because compounding interest works magically when you start early i started investing when i was earning just 30 000 rupees per month so you can do that too as 25 year old try saving 20 to 25 percent of your salary because this is the time in your life when you can really live a frugal life if you try and yes i know it's gonna be difficult so by 35 years you have gotten good experience about corporate life or business that you are doing now you are feeling little more confident and your salary is also somewhat satisfying so by 35 years you should have saved twice your annual income for example if at 35 years of age your salary is 12 lakh rupees per year then you should have saved 24 lakhs by now it can be in mutual funds stocks or some other financial instrument to know more about this you can check out my financial independence by step series it will guide you till the end this amount you can achieve by making automatic investment plan that invest money as soon as your salary comes into your account every bonus and increment should go into this investment and try to live as modest as possible this is a time when you are already going to be married or about to get or maybe even have kids also by this age you are planning to buy a house to settle down and for that it's very important to have good credits go so you can get home loan on lowest interest one of the things that can help you out in this is credit card by using credit card for your purchases and paying is due in full at the end of the month will help you in getting good credit score remember to use it wisely and painful otherwise this can backfire badly [Music] 45 years congratulations i hope you are wiser now and investing smartly in life if you have previously made investments as mentioned here then by now your investments should be going magically with compounding interest by 45 years you should have saved four times your annual income at this age that means if you are earning 30 lakhs rupees per annum at the age of 45 then you should have saved 1.2 crore by now but here things get little complicated so you need to cover other things too because of taking care of full family just saving money according to your income is not a good idea so you need to make sure that by now you should have invested 7 to 9 times your spending that means if your annual spending is 10 lakhs then you should have 70 to 90 lakhs in mutual fund investment now why mutual funds because mutual funds will help you in growing your money and inflation will not affect that much so at least this seven to nine times annual spending should be in mutual funds if not more because as indians they are good in saving money but at the same time we are quite bad when choosing a financial instrument that can beat inflation and that's why most of indians put their money in house gold or fixed deposit which does not help them in growing their money if you want to know how much average indians net worth is or where do they invest then you can check out my video on that another thing you can take care of at this age is that you have national pension scheme or some other kind of tax saving retirement investment and then you should invest in it to its full capacity like provident fund offers tax benefits till 1.5 lakh rupees per year and you should take fully advantage of that to know more about tech saving instrument you can check out chapter 4 of my financial independence series at 45 you should also own a house by now living with your family and in settling down process home is a dire need and surely you don't want to be shifting houses at this age and if you have a house now then home loan will be paid off by your retirement and that's a nice retirement gift for you 55 years you are at the peak of your earnings at this age and now you have some idea about when you want to retire in life by now you should be having 6 to 7 times your annual salary saved so if your salary at 55 age is 40 lakhs per year then you should be having 2.4 to 2.8 crores by now if you are constantly making investments from your 20s then you have nothing to worry about this amount let me show you how easy is to reach this amount if you start even at the age of 25 and invest 8 000 rupees per month in mutual funds that give you 12 per annum return which is a normal return over 30 years then by the age of 55 you will be having 2.8 crore rupees magic right that's why compound interest is called the eighth wonder of the world do you know out of this 2.8 crore rupees how much amount you invested in 30 years just below 29 lakhs yes by putting not even 29 lakhs you made 2.8 crore for yourself apart from that try to pay off your home loan before your retirement and keep up the good work these are the numbers that you should be hitting on every decade of course these are just ballpark numbers and you could be needing or wanting to have more or less it's all about knowing what you want from your money and how your savings habit makes or breaks your life main idea is to have more conversation about money with your friends and family and not make it a taboo if you want to learn step by step how to plan your whole financial journey then check out my financial independence series it will help you out from start to end signing out my money universe