Now Reading: Five steps for Gen Z to build wealth from first paycheck
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Five steps for Gen Z to build wealth from first paycheck
Two financial experts have laid out simple roadmaps for young first-time earners to build wealth. Feroze Azeez, joint CEO of Anand Rathi Wealth, advises Gen Z to first build an emergency fund…
The Story in Brief
Two financial experts have laid out simple roadmaps for young first-time earners to build wealth. Feroze Azeez, joint CEO of Anand Rathi Wealth, advises Gen Z to first build an emergency fund covering 3-6 months of expenses in a liquid fund or fixed deposit before starting SIPs in equity mutual funds. Once the buffer is ready, redirect monthly savings into goal-based long-term investments and increase SIPs as income grows. Separately, SEBI-registered analyst Shashank Udupa recommends keeping 12 months of expenses as a cushion, buying term and health insurance with cancer riders, and allocating investments by goal timelines, not product names. He urges tracking real returns after tax and inflation to avoid owning products that only feel safe.
The Indian Opinion
The narrative that young earners must start investing aggressively from day one ignores the real risk: a medical or job emergency that forces premature withdrawals. Both experts rightly insist on a 3-12 month expense buffer and insurance first. Yet many finfluencers push high-return products without this foundation. The concrete test is whether new investors actually set aside that safety money in liquid funds or FDs before chasing SIP returns. Will discipline beat FOMO? Ask after the next market correction.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
