Now Reading: Gen Z Should Build Emergency Funds Before Chasing Wealth
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Gen Z Should Build Emergency Funds Before Chasing Wealth
Anand Rathi Wealth joint CEO Feroze Azeez has advised Gen Z earners to build a financial base before prioritising wealth creation. He recommends keeping three to six months of essential expenses in…
The Story in Brief
Anand Rathi Wealth joint CEO Feroze Azeez has advised Gen Z earners to build a financial base before prioritising wealth creation. He recommends keeping three to six months of essential expenses in a liquid mutual fund or easily accessible fixed deposit.
Azeez suggests splitting early savings between an emergency fund and a modest systematic investment plan in a diversified equity mutual fund. After the buffer is complete, investors should align products with goals, using equity funds for long-term needs and debt funds or fixed deposits for near-term expenses. He also recommends raising SIP contributions as income grows, continuing investments during market volatility, and maintaining health and term insurance.
The Indian Opinion
The loudest money narrative often tells young workers to start aggressive equity investing immediately, while another treats every market fall as a reason to stop. Both ignore cash-flow reality. A three to six-month buffer can prevent forced withdrawals, but a liquid fund is not a substitute for insurance or careful budgeting. The useful test is simple: can the investor meet essential expenses for six months without selling long-term holdings? If not, the portfolio is running ahead of the person’s finances.
Source: livemint.com
This story was synthesised by AI from the source linked above.
