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5 Common Money Mistakes We Make In Our 20s and 30s

Investments turned negative

As soon as we start earning our salary, we make some radical financial and monetary decisions, which end up being mistakes in the long run. There are quite a few reasons for this, but one that is commonly attributed to problems like these is low financial literacy. Our schools, colleges, and a number of years of formal education may prepare us to face the real world, but more often than not, it leaves us completely clueless about the financial world. This is why we have listed down 5 common money mistakes we make in our 20s and 30s, so you can avoid these! 

  1. Frivolous Spending- The indescribable joy of the first salary, the rush when your account shows salary credited, we understand how this can be an invitation to spend it all, and that’s exactly what we do in our 20s. Living beyond our means won’t get us to financial freedom anytime soon, and living paycheck to paycheck is certainly not the way to go. Since we are not taught the basics of money management from a young age, these skills take time to develop in our adulthood and may affect us in the long run, if we are not savvy with our expenses! 
  1. Not Having Financial Goals- Like with any destination, it is easy to get lost amidst the confusion if our journey is not mapped. Having a financial goal is really important because if we don’t have a financial plan, our expenses will be unhinged and you will be completely clueless when an emergency hits. We know the future is a long shot, and you might feel that there is time, but every year you don’t categorize your goals, you lose a layer of financial security. Start with short-term goals, like saving an x amount, or opening up a retirement fund, just the thought is a wise investment in your future! 
  1. Credit Cards- Oh the ominous credit card! When we are in our early 20s and 30s, maintaining an image (and over the top credit card limit!) is all the rage. This habit is extremely harmful especially in your 20s if you have education loans and other debts pending. Plastic is drastic, this rings true for that credit card lingering in your wallet waiting to add exponential debt with its towering interest rates and deceptive rewards. However, if you are of the very disciplined ones, you might think about owning 1 credit card. 
  1. Not Having An Emergency Fund- Usually, having any money saved at all at the end of the month quickly translates to orders from Zomato and that red dress from Zara- although indulgences are good once, in a while, you are completely going bare if you don’t have an emergency fund. The pandemic has taught us bitterly that job security and financial wellness may all well be transient and that fortune favors the prepared. Not having an emergency fund will be crippling if any sort of financial or health emergency arises, you will be on shaky ground! 
  1. My Friend Told Me To Invest In..- Beware of this! We understand that friendships are important, but take everything with a grain of salt. We have all been guilty of falling trap of conjecture and investing our money in a risky stock which we would not have otherwise. Falling trap to what others are saying is a common problem, but it can be extremely pricey when it involves literal money! Investing is a great tool for your money to work for you, but make sure that you do your own research and not fall into so-called trends and end up in grave financial danger! 
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5 Tips To Customise The Perfect SIP Plan For You-


There are so many different options and ways in which you can catapult your journey towards financial freedom if you make the decision to wisely invest your money. We often find that taking the first step towards our goals is the most bewildering as there are so many financial products available in the market. If you are a beginner, then a SIP is perfect for you! A Systematic Investment Plan allows you to save and invest your money regularly, it does not have to be a huge amount, which is why it allows beginners to start their journey towards financial freedom. You can choose to start a SIP on a monthly, weekly, or yearly basis depending on your needs.  Here’s what you can do to make the most out of your SIP investment! 

  1. Make sure that the mutual fund or the SIP plan that you choose, has been around the market for at least 5 years. Do not jump to invest in the trendiest plans or the most touted funds- instead, research and collate your needs and capacity to your investment. A great way to do this is to analyse the returns of a fund over a considerable amount of time and then make the calculated decision of whether you need to invest in this or not. Make sure that the fund house that you choose to invest in is recognizable and is registered by SEBI. 
  1. A high volatile fund might attract you to invest a chunk of your money in it, but make sure that you first analyze the current financial market before you hop on to trends. A great way to do that is to track the stock market and analyze the volatility of the market before you invest in high volatile stock / fund. See their past trends and returns, if they have a consistent track record, investing might be a good option. Stay away from risks like low liquidity by actually doing the homework and not falling prey to trends as they can become quite costly. 
  1. The total corpus should be expansive. If you are new to investing, look for funds with a corpus size of 500 – 1000 crores. 
  1. Try investing in tax-saving schemes like an Equity Linked Savings Scheme (ELSS). These schemes are not only a lucrative way to get back high returns on an investment but also help tax deduction up to Rs 1.5 Lakh a year. ELSS can also be used as a Growth Fund which can be used as a long-term wealth creation platform, where you can realize the full value of the investment when you choose to redeem it. ELSS linked schemes are great for young and old investors alike who are starting out their investment journey, and looking for a higher rate of tax deductions. 
  1. Diversify your portfolio. We always like to stick to our comfort zone and invest in stocks that are only doing well for the current time period, ignoring the other stable stocks, which go a long way to protect us from the volatility of the market. The returns of the major asset categories like stocks, bonds, and cash move differently at all times, as the forces of the market can help one category do better and hinder the growth of another. By diversifying your portfolio you can reduce the risk of losing money and make sure that the overall investment stays stable. 

Don’t be afraid of venturing out and taking a step towards securing your financial future. The plethora of financial advice and investment plans can confuse any first-time investor, which is why we recommend that you choose a financial roadmap that is unique to your own needs and goals and make sure that you are consistent and stick to it! Deciding to take the first step is half the job done! 

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5 Tips To Optimize Your First Salary

When we first earn our hard-earned salary, our emotions often get the best of us, and we end up spending so much that we’re left with almost nothing, too soon. What’s worse, it might end up as a bad habit and will hurt us in the long run. Relying on well-known baristas every day for coffee, ordering food online might satisfy your urges, but only for a few hours. We know what it’s like to be swayed by our wants so easily, which is why we are sharing these 5 financial tips: 

1. Start Saving Up For Your Retirement- Although you might think that your retirement has ages to come, consider saving up for it NOW. If your company adds a percentage to your retirement savings, then you are lucky, but if they don’t create your own which automatically deducts the amount as soon as your salary comes in. Treat it like you are paying a bill, but the most fun part is- that you are only paying YOURSELF! 

2. Hire a Professional- Creating our own financial goals might be easy, but getting there is difficult, as we need to map very complex financial routes that might be beyond our own bandwidth. That’s where professionals like CAGRfunds come in.  They assess the health of your finances and assign plans or investments that help you get to your goals. Start small with an annual financial check and then build up a relationship! 

3. Accelerate Debt Repayments- Try to pay off your debts as soon as possible. They may be your student loans, credit cards, or any type of personal loan you might have taken. It’s simple- start off with the loans which accrue a high interest, in most cases, they are credit card loans or student loans. Like the retirement option, try automated payments towards these loans so it feels like a monthly bill, so you don’t have to depend on the last moment to scramble over your finances.

4. Invest in a PPF or an ELSS- Under section 80C of the Income Tax Act of 1961, Equity Linked Savings Scheme or ELSS is a tax saving investment wherein by investing in it, you can claim a rebate of up to 1,50,000 and save almost 50,000 a year in taxes! It is the only kind of mutual fund that is eligible for tax benefits under section 80c.   A PPF or a Public Provident Fund is a government-supported retirement saving scheme to help generate small-scale savings towards retirement. It is also a tax-saving investment that helps you build your retirement fund while saving you some money from getting taxed. 

5. Create an Emergency Fund- The pandemic has taught everyone about the dangers of uncertainty and the chaos that it may bring. Any unforeseen circumstance might befall you causing you to incur heavy expenditure. Again, automating your payments towards your emergency funds, and treating it like a bill, helps you to make creating funds easier. 

We hope these 5 easy tips help you forge a path towards your financial goals! Happy saving and investing!

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Here’s Why SIPs Are A Great Idea!

We’re all taught how to dream big from day one. Be it your dream house, owning that Porsche or going on that bucket-list trip, we’ve been encouraged to aspire.
While everyone teaches us to dream big, no one shows us HOW to reach these goals.

On some days, we’re confident of ourselves and our dreams. On other days, we feel like we’re working hard for nothing. How does one stay motivated?

Here’s some food for thought : If investing was taught to us as a subject in school, can you imagine how revolutionary the economy would have been, with individuals who were confident of their money management skills?

Aspects like how to have an analytical mindset, how to take calculated risks, how to invest the right way, what are the financial risks involved, how to have more than one stream of income, how to calculate risks v/s returns and more, would have transformed us from individuals to successful investors, do you agree?

At a time like this when we’re left feeling overwhelmed and confused, what we need is an investment strategy that will see us through on a rainy day. Speaking of which, have you considered SIPs?

What are SIPs? How can they help you achieve your goals? How can they help you stay financially independent? Here’s a quick 101:

What are SIPs?
A systematic Investment Plan is an investment tool through which you can invest in Mutual Funds. While in several other investment tools, the individual has to pay a large sum of money at once, SIPs use a systematic method of investing a fixed sum of money over a period of time.
The time of investment could be monthly, quarterly, semi-annually etc.
This gives us the advantage of making many deposits over time without the burden of investing a lump sum at once.

What are the benefits of investing in SIPs?

1.Compounding.
When you invest in a SIP, you can enjoy a compounding return on your investments. It has substantial practical implications as and when an individual invests in SIPs regularly, the returns they have earned also gets reinvested. Over time this creates a snowball effect which helps an individual get more returns from the investment over a long time. In essence, if you begin investing in SIPs at a young age, the more benefits you can enjoy!

2. Low initial investment.
Through SIPs, you can invest in Mutual Funds with a monthly cost as low as ₹500, making it very affordable while not hampering daily needs. You could also increase the amount of investment if you have a raise in income. Meaning you can start with an amount as low as ₹500 – ₹1000 and then gradually increase the amount of investment through which you can reach your dreams at a faster rate.

3. SIPs are super convenient.
So many of us do not have the time, knowledge and tools required to study the market and do extensive market research. You will have to choose a good fund and let the platform you’ve chosen do its job of automating the payments. It will save a lot of time and effort, making it more convenient.

4. Rupee cost averaging.
When you invest in a SIP, the funds are purchased according to the market rates. It means that you can buy fewer units of the fund when the market is high and buy more units of the fund when the market is low, averaging the cost of the units in the long run. This makes investing steady and helps keep your investment away from market volatility.

Simple tools like SIPs are helping people invest small funds over a long period of time, taking it easy on their bank balances while turning dreams into reality. SIPs will definitely help you achieve your goals making it suitable for your investment needs.

Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme related documents carefully.