In this series, we delve into 30 pivotal financial decisions that can significantly influence your life trajectory. If you missed the first part, I highly recommend catching up before diving into this segment.
Previous Parts
Recap: First Three Decisions
- Obtaining a PAN Card: Essential for financial transactions and tax purposes.
- Opening a Savings Account: Opt for high-interest accounts to kickstart passive income.
- Building Credit with a Credit Card Against FD: Bolster your credit score early on to ease future financial endeavors.
TRANSITIONING TO COLLEGE LIFE (AGES 18-21)
Upon entering college, you enter a phase ripe with financial opportunities and responsibilities. Let’s explore the next set of crucial decisions tailored for this period:
Decision 4: Generating Passive Income
- Why It Matters: The Indian market favors early starters. College students have ample time to explore income-generating avenues.
- Key Benefits: Besides money, passive income fosters skill development, exposes you to industries, and lays the groundwork for financial discipline.
Decision 5: Learning About Investing
- Why It’s Crucial: Investing early sets the stage for long-term financial security. Start by educating yourself on various asset classes, including stocks, mutual funds, and SIPs.
- The Learning Phase: Spend at least three years understanding investment fundamentals before committing funds. The goal is to be well-versed by the time you start earning.
Decision 6: Filing Income Tax Returns (ITR)
- Early Filing: Regardless of income, file ITR to establish financial credibility and streamline future financing endeavors.
- Building Creditworthiness: ITR submissions showcase your financial history and boost your creditworthiness, laying a strong foundation for future financial endeavors.
Conclusion
Every decision you make today shapes your financial future. By focusing on generating passive income, learning about investing, and filing ITR early, you’re laying the groundwork for a financially secure tomorrow. Stay tuned for the next installment as we continue unraveling the journey to financial empowerment.
Remember, these choices aren’t just about money; they’re about setting the stage for a prosperous future. So, take charge of your financial destiny starting today!