HOW GENZS CAN BUILD WEALTH STARTING FROM FIRST PAYCHECK— EXPERT LISTS 5 STEPS ON FINANCIAL PLANNING

Many youngsters face the dilemma between the proportion of salary allocation between SIP and emergency fund. Anand Rathi Wealth Limited joint CEO Feroze Azeez provided a solution to this problem and suggested ways in which one can build wealth from the start. Arguing that building a strong financial foundation should be a priority before wealth creation, he described how informed choices from the first paycheck to timely investments from consequent pay slips can be rewarding in the long run.

5 steps for rewarding financial planning

Feroze Azeez recommended the following investment strategy for wealth creation:

• Before focusing on wealth creation, one should prioritise putting money into an emergency fund such as a liquid mutual fund or an easily accessible fixed deposit to cover 3 to 6 months of essential expenses, the official of one of the three leading non-bank mutual fund distributors in the country said. This will not only protect the person from emergencies but will also prevent extraction or redemption from long term investments.

• Don't' wait to start investing – According to the joint CEO of one of the top non-bank wealth solutions firms, one should split savings between building emergency fund and starting an SIP even its modest. The practical approach is to invest half of the savings in a liquid fund and the remaining in a diversified equity MF SIP. This will strengthen financial safety net and at the same time build financial discipline.
• Once emergency fund goal has been achieved, redirect entire monthly savings towards long-term investments. As a part of this step, Feroze Azeez recommends identification of goals and their classification into short, medium and long term objectives. Once long-term goal is clear, calculate immediate expenditure needed and subsequent regular instalments. This will provide an understanding about right asset allocation.

• Next, the aim is to ascertain whether long term goals are suited to diversified equity MFs like flexi-cap or multi-cap funds. It is better to place funds in lower-risk options like debt funds or fixed deposits if the need is in the near term. Through goal-based investing, one remains invested in market cycles.
• As income grows, increase SIP amount and continue investing even during times of market volatility.

Importance of financial discipline

Besides all the investment plans and strategies, one should not lose focus and must remain disciplined as it's an effective way to build long-term wealth. At the same time, purchase of adequate health insurance and term insurance is essential to shield against adversity.

2026-08-06T07:47:11Z