Help! Tips for an 18-Year-Old Newbie!

[Bhavya Gupta]

Hi Everyone!, This is my first post
I just turned 18 and I don't even know a thing about finance. Basically, I know how to manage physical money and all but I don't even know how to open a bank account, how many accounts are there, how to manage accounts, how to learn about taxes and interest and all(I am from Science background).
how to analyze myself about taxes and money savings, how to manage money digitallly as there are so many platforms
Basically, is there any way to learn from the start and from the very basic? Is there any resource which I can refer?

There are so many things to learn., please share any resource

 

[vivekraje]

First of all, traditional methods of saving money is one of the very basic things you can do. This may seem to be old idea , but has worked from thousands of years and will work for next 100 years also. Whatever the society say to you, understand that "a peny saved, is a peny earned"...its like saving water, when you save a liter of water during rains, that same saved water will help you in summer ( its a metaphor, try to understand the meaning behind it)..Go to bank and open an account, at first you may feel nervous while doing do, but just go to bank and do it...if you need help gobwith your parents or friend..try to practice small amount of atm transactions and online transactions.

Second thing is to INVEST IN YOURSELF, get acquainted to new skills, learn digital marketting, learn instagram - facebook marketting, teach on udemy some small courses, or if you are good in arts - take online classes on zoom to help others in improving their art. If you learn some of the skills apart from your regular education you can go far...within next 10 years your life will change, but YOU HAVE TO MAKE THE EFFORTS FOR IT.it won't be easy, but nothing is easy at the start.

Third thing is try to open a dmat sccount with help of your parents, like zerodha, indmoney etc.
Whatever amount ( start with as low as 500 rs/ month) you saved put 30% or more in mutual fund ( share market)...this is another old method , but works.

Forth thing - buy digital gold, you can literally buy gold in daily, weekly, monthly sips, starting from 20 rs / day...Understand that GOLD AND SILVER ATE GOD'S MONEY..the currency note is just a paper, but no one can beat the consistant growth of God's money...

Dont worry now for the taxes, as if you are in a job, anyway you do not have choice but to pay taxes...if you build abusiness later, well that is anyway will take fome time, so relax...

FIND A GUIDE OR MENTOR, A GURU who can help you in understanding all these things, take basic knowledge from internet , like from blogs, youtube videos etc. , but never underestimate the importance of a MENTOR/ GURU...he can turn your life upside down and can totally transform you within months, he can change your mindset, destroy your limiting beliefs, improve self image, develop your character, and make you finacially free and happy.

Hope you try all of the above. All the best, let me know if you need further discussion on this topic

 

[omneelsavant]

Opening an account is very easy nowadays. As you are new, I suggest you go with either Kotak 811 or AU Small Finance Bank zero balance savings account as you won't have to maintain a minimum balance. All the account opening formality is done online. You just need your Aadhar, and PAN and also put your signature on a blank paper with a blue pen. You will get access to your new account in hours. Both the aforementioned accounts have fantastic interest rates too compared to the older banks like SBI, ICICI, Canara Bank, etc. Also, I suggest that you don't go for a physical debit card as of now as you will be charged an annual fee between 150 and 300 bucks. As UPI is prevalent everywhere, there's not much use for physical debit cards. Go for a virtual debit card instead,

 

[Gunn]

make sure you have atleast rs 500 everytime in your pocket everytimeincase of emergency

 

[Gunn]

and if you save approx 200 rs everyday

 

[Kaasyap]

Congratulations on entering the exciting world of adulthood! It's natural to feel overwhelmed at first, especially when it comes to finances. But don't worry, you're not alone, and there are plenty of resources to help you get started. Here are some tips to navigate your financial journey:


Building the Basics:

1. Open a Bank Account: Start with a basic checking account. Research local banks and online options, comparing fees and features. Consider student accounts for potential benefits.
2. Understand Account Types: Savings accounts are for building long-term savings, while checking accounts are for everyday transactions. Explore options like money market accounts for higher interest rates.
3. Managing Accounts: Utilize online banking and mobile apps to track your finances. Set up alerts for low balances and overdrafts. Learn about debit cards and their associated fees.
4. Taxes 101: Start with the basics like income tax and deductions. Many resources explain taxes in simple terms. Utilize government websites or free online tools to estimate your tax burden.
5. Interest Demystified: Understand the concept of interest as the price you pay for borrowing money or the reward you earn on savings. Learn about different interest rates and their impact on loans and investments.

Learning Resources:

• Khan Academy: Offers free online courses on personal finance, including budgeting, investing, and taxes.
• Investopedia: Provides educational content on various financial topics, explained in an easy-to-understand manner.
• The National Endowment for Financial Education (NEFE): Offers resources, tools, and programs on financial literacy for all ages.
• Government Websites: Your country's government website likely has a section dedicated to taxes and personal finance.

Additional Tips:

• Budgeting Apps: Use budgeting apps like Mint or YNAB to track your income and expenses, helping you stay on track and identify areas to save.
• Start Small: Don't try to learn everything at once. Begin with a few basic concepts and gradually expand your knowledge.
• Seek Guidance: Ask parents, trusted adults, or financial advisors for guidance and clarification.
• Beware of Scams: Be cautious of financial scams and always research before investing or sharing personal information.

 

[ayushagarwal]

Hi Everyone!, This is my first post
I just turned 18 and I don't even know a thing about finance. Basically, I know how to manage physical money and all but I don't even know how to open a bank account, how many accounts are there, how to manage accounts, how to learn about taxes and interest and all(I am from Science background).
how to analyze myself about taxes and money savings, how to manage money digitallly as there are so many platforms
Basically, is there any way to learn from the start and from the very basic? Is there any resource which I can refer?

There are so many things to learn., please share any resource

Hi Bhavya,
It is really good to see a young person willing to know about this. I will try to be simple and will suggest what I would have suggested my younger self.

The ultimate key is not where you invest (As you read about any that will appeal you very much), key is discipline to save in a regular manner (Ex: If you earn try to fix an amount you would like to save, lets say a % of inflow and come what may do save before you spend)

Now Point by point
1) Manage accounts : See this digital age its pretty simple, you open account in any bank you like they have an app and with UPI you can deal with payments. I personally use Paytm and Bank app interfaces are easy to understand
Suggestion here : I would suggest open a diff account where you transfer your monthly expenses amount and use that acount for day to day and other expenses

2) Taxes : if you will do job your company will manage tax payments and all, but roughly there are tax slabs (easy to google) on which your income is taxed, Govt offers you certain deductions which you must use like (Investing in PPF / Life Insurance / Medical insurance)

3)Savings : Now it is very critical and you will keep learning as you go, i will break into 3 parts that are done
A) Government deposits : These are safe and you cant get money out easily until a certain age and trust me thats the best part, when you have money at your disposal you might use it, below are the ones you should open
-PPF - here you can invest upto 1.5 lacs in a year and get tax benefit too
-NPS - here you can invest any amount but tax benefit of 50K

B) Mutual funds : For every beginer or someone who dont have deep knowledge of stocks these are must. now challenge comes how to choose
-Index fund - Go for this as this invest in top companies only so basically you trust on growth of a INDIA
-Apart form above you can invest small amount in Mid cap / Small Cap / Flexi fund . just start with one than you will learn

C) Shares : These are most lucrative and risky too, dont fall in trap of intraday or think 25 din me paise double
-There are two ways on is Funamental analysis and other is Technical analysis (there is lot on youtube to learn)
-But initally invest in companies who are big not fall for penny stock trap

There is plenty of knowledge available you can learn all, but go step by step dont try to be a master of all

Other key factor i would suggest
Do take term insurance whenever you start earning and try to maximise the cover. It is a must to have product.
-Buy at young age and can step up when you increase earning as premium would be less
-Take tennure atleast 60+ age of yours

I hope above helps

 

[Bhavya Gupta]

Hi Bhavya,
It is really good to see a young person willing to know about this. I will try to be simple and will suggest what I would have suggested my younger self.

The ultimate key is not where you invest (As you read about any that will appeal you very much), key is discipline to save in a regular manner (Ex: If you earn try to fix an amount you would like to save, lets say a % of inflow and come what may do save before you spend)

Now Point by point
1) Manage accounts : See this digital age its pretty simple, you open account in any bank you like they have an app and with UPI you can deal with payments. I personally use Paytm and Bank app interfaces are easy to understand
Suggestion here : I would suggest open a diff account where you transfer your monthly expenses amount and use that acount for day to day and other expenses

2) Taxes : if you will do job your company will manage tax payments and all, but roughly there are tax slabs (easy to google) on which your income is taxed, Govt offers you certain deductions which you must use like (Investing in PPF / Life Insurance / Medical insurance)

3)Savings : Now it is very critical and you will keep learning as you go, i will break into 3 parts that are done
A) Government deposits : These are safe and you cant get money out easily until a certain age and trust me thats the best part, when you have money at your disposal you might use it, below are the ones you should open
-PPF - here you can invest upto 1.5 lacs in a year and get tax benefit too
-NPS - here you can invest any amount but tax benefit of 50K

B) Mutual funds : For every beginer or someone who dont have deep knowledge of stocks these are must. now challenge comes how to choose
-Index fund - Go for this as this invest in top companies only so basically you trust on growth of a INDIA
-Apart form above you can invest small amount in Mid cap / Small Cap / Flexi fund . just start with one than you will learn

C) Shares : These are most lucrative and risky too, dont fall in trap of intraday or think 25 din me paise double
-There are two ways on is Funamental analysis and other is Technical analysis (there is lot on youtube to learn)
-But initally invest in companies who are big not fall for penny stock trap

There is plenty of knowledge available you can learn all, but go step by step dont try to be a master of all

Other key factor i would suggest
Do take term insurance whenever you start earning and try to maximise the cover. It is a must to have product.
-Buy at young age and can step up when you increase earning as premium would be less
-Take tennure atleast 60+ age of yours

I hope above helps

Thanks a lot! Now while reading this, its not that much complicated as I was thinking.

 

[Tax with Ria]

Hi Everyone!, This is my first post
I just turned 18 and I don't even know a thing about finance. Basically, I know how to manage physical money and all but I don't even know how to open a bank account, how many accounts are there, how to manage accounts, how to learn about taxes and interest and all(I am from Science background).
how to analyze myself about taxes and money savings, how to manage money digitallly as there are so many platforms
Basically, is there any way to learn from the start and from the very basic? Is there any resource which I can refer?

There are so many things to learn., please share any resource

I am glad to know that youngsters like you are keenly interest in finance and it's tools. Keep the good work and stay in this community page more often to get valuable advises to manage your pocket money or anything related to opening of bank accounts .

 

[Hema Kulkarni]

These are all great tips. Just want to add 1 more

If possible, try to get a Secured credit card as early as possible as it will start building your credit score. Within couple of years you will have a credit score of 750+ which will go a long way in simplifying your financial journey