The Only Financial Advice you need as a 25 Years-Old!

~ From a 52 Year-Old Millionare.

Last week, I was at a family dinner in Delhi.

I love summers — but more than that, I love spending them with family.

It’s the one time of the year I truly let go… the late-night maggi, the random debates, and those unfiltered conversations with every single family member. You know the kind.

This year, one new topic came up: the blogs I write for you guys.

Hearing my family appreciate something I’ve poured my heart into made me feel emotional, proud, and deeply grateful. It reminded me why I started writing  -  to bring no-BS, simple, and clear personal finance guidance to people who want to understand money without the jargon.

And then I turned to Sharad Uncle  - my 52-year-old uncle, a millionaire, a wise-cracker, and honestly, the coolest person in the room.

Guess what?

He approves my blogs. ✅

And that meant the world to me.

He adviced me, “Don’t ever confuse people when it comes to money and bring clarity to those who are confused. Be straight-forward!”

That hit hard.

Not just as a writer, but as a learner myself.

So I asked him  -  “What financial advice would you give me so I can be where you are when I’m your age?”

He smiled and said, “Just don’t do anything illegal.” 😄

We all cracked up  -  me, my cousins, and other family members.

But then he got serious  -  and gave me and my cousins a list.

No fluff. No buzzwords. Just clear, straight-up financial advice that he believes every 25-year-old should know.

So here it is — from my family dinner table to your screen:

1. Save 20% of Every Rupee You Earn 

Before lifestyle creeps in, make this your rule:

• 50% needs (rent, food, bills)

• 30% wants (eating out, subscriptions)

• 20% savings (non-negotiable)

💡 Automate your savings the day your salary hits your account.

2. Build a 6-Month Emergency Fund First 

Life happens  -  layoffs, medical emergencies, car repairs. Be ready.

✅ Keep 6 months of expenses in a liquid fund or high-interest savings account.

✅ Not in stocks. Not in crypto. Not under your mattress.

3. Buy a Term Insurance — NOT an Investment Plan

If someone depends on your income, term insurance is a must.

Not LIC endowment plans. Not ULIPs. Just pure term insurance.

• Cover = 20x your annual income

• Buy online (cheaper)

• Pick a reputed insurer (check claim settlement ratio)

❌ Don’t mix insurance with investment. You’ll lose on both ends.

4. Get Health Insurance  -  Even If Your Company Gives You One

One hospitalization can wipe out years of savings.

✅ Buy a personal health insurance plan (Rs. 5–10 lakh cover minimum)

✅ Get critical illness cover too

✅ Start early to lock in low premiums

5. Invest 30% of Your Income to Build Wealth

Now that you’re protected, let your money grow.

Here’s a simple plan:

Goal Investment Type

Retirement  NPS, Index Funds

Wealth Building Mutual Funds (SIPs)

Tax Saving   ELSS, PPF

Short-Term Goals  Debt Funds, FD

✅ Start with index funds or balanced mutual funds

✅ Stay invested long-term (10+ years)

✅ Don’t try to time the market. Time in the market matters.

6. Don’t Skip These Financial Tools 

🔒 Nominate beneficiaries on every account

📜 Make a will by age 30 — doesn’t matter if you’re broke

📲 Use apps like Groww or IndMoney for investments

📊 Track net worth yearly — it keeps you focused

7. Don’t Buy Before You Can Afford It Twice

Just because you can swipe it doesn’t mean you should.

• Delay gratification

• Buy appreciating assets, not depreciating liabilities

• Credit cards? Only if paid in full every month

Always & always remember 

You don’t get rich by making flashy moves. You get rich by making boring, consistent ones for a long time.

📌 Insure first

📌 Save regularly

📌 Invest automatically

📌 Protect your downside

📌 Live below your means

“Do this in your 20s and you won’t just survive — you’ll thrive and you’ll be millionaire very early in life.”

Thanks for reading my thoughts and as always, rooting for you from afar.