Close
Reviewed by Ibnujala
Financial literacy is a crucial part of every individual, as it enhances their relationship with money. It is nothing but an awareness or knowledge of money management, budgeting, saving, investing, and more. Being financially literate helps individuals develop a good relationship with financial matters.
Being financially illiterate can lead to various problems that might end up in huge unmanaged debts, falling for financial scams and threats, being trapped in a never-ending cycle of interest and loans, and many more. This illiteracy not only affects grown-ups but also has a major influence on students and kids.
A 2019 study by the National Centre for Financial Education reports that only 27% of Indian adults have basic financial knowledge. This value is considered significantly low by most experts.
So, understanding the importance of assets vs liabilities, managing credit cards and other expenses, creating budgeting strategies and following them, and maintaining financial goals are not just grown-ups’ things, as financial literacy is important for students, influencing their short-term and long-term goals.
In this blog, we will have a detailed discussion on why financial literacy is crucial for students and related topics. So, let us get straight into the details.
As students shift from dependence on their parents to adulthood, where they need to manage their lives alone, they might have to face several challenges. Among these challenges, the most crucial will be the financial challenges.
As students step into adulthood, finances change from managing mere pocket money to managing tuition fees and credit card bills and setting long-term financial goals like buying a car, buying a home, or being financially independent.
So financial literacy plays a crucial role for students. Here are some important factors that underline why schools should teach financial literacy.
Money management is one of the cornerstones of financial literacy. Improving financial knowledge will help students, especially college students, gain better insights into habits like budgeting, tracking expenses, and creating emergency funds.
By incorporating these practices, students will gain better control over their income sources, expenses, and cash flow. Not only do these money management habits help avoid financial scams and pitfalls, but they also form the groundwork for wealth accumulation and a prosperity mindset early in life.
Students often get introduced to bank accounts, online banking and mobile apps, credit cards, and more when they start living independently. However, if they do not have proper financial knowledge, the chances of them getting trapped with unnecessary borrowing, poorly managed high-interest student loans, auto loans, and more are high.
But proper financial knowledge and education will help one have a better understanding of these matters, aiding in the healthy management of credit scores and credit reports, good debt management, and avoiding poorly managed high-interest auto loans or mortgages.
When it comes to students, financial planning is not only about retirement planning but also includes paying for college, utilising work-study programmes to support their education, managing scholarships and grants, decision-making on higher education, understanding how student loans work, and more.
So, strong financial knowledge will help students improve their financial planning by understanding compound interest and exploring various investment opportunities.
Moreover, some popular names like Lesley-Anne Scorgie and others showcase the importance of financial knowledge. Lesley, a Canadian author, started her first savings bond at 10 and her first mutual fund at 14. Her life showcases how acquiring financial literacy early in life helps shape life decisions, leading to improved living standards.
Therefore, financial literacy is important for students before exploring these opportunities, because, through proper education, they can have a broader understanding of the terms and conditions, rules, and mistakes to look for in these investments.
Similarly, another crucial aspect of financial literacy is mitigating financial scams and protecting oneself from risks. Money is important for all individuals. Today, people face various threats of financial scams, data theft, and cybersecurity threats.
Although individuals, irrespective of their age, can be prey to these scams, there’s a high chance that students fall into these pitfalls more easily. However, with proper awareness, they can stay attentive to these fraudulent schemes, unsafe online banking practices, or misleading claims about financial products.
Furthermore, although modern investment options like mutual funds, stock exchange participation, and Forex trading have the potential to offer higher profits compared to traditional investments like FDs and RDs, they also carry higher potential risks.
So, this is another major factor enhancing the importance of financial literacy for students.
At the core, the major aim of financial literacy in students is to improve their financial independence and build financial confidence. By improving financial knowledge, students can make informed decisions on loans, insurance, and financial products, which helps them avoid unnecessary debts and overspending.
Moreover, it will help them move toward financial security and financial freedom, which not only aids them in living independently but also encourages them to grow into informed adults and successful individuals in finance.
With proper financial knowledge, students can easily learn budgeting, saving, and investing. So, they can properly allocate their money into needs, wants, savings, and more.
With this understanding of how money allocation works, students can divide their resources accordingly and create a strong foundation for building financial security. So, they can not only achieve short-term goals like studies and day-to-day expenses but also work towards long-term goals like higher education, purchasing a car or a home, and more.
Life always remains unpredictable. Unexpected financial crises caused by sudden vehicle repair, job loss, medical needs, and more can make life difficult. However, financial literacy makes people aware of the need for emergency funds.
Understanding the importance of emergency funds will help individuals set aside a portion of their income into emergency funds. By starting to build this fund early, students can develop a significant emergency fund in the future that offers financial stability during hard times.
How can students become financially independent? There are certain key skills that students should learn to improve their financial knowledge and attain financial independence. Some of them are as follows:
Even though learning personal finance gives confidence to students, some fall into various pitfalls and mistakes. Some of them are:
Overspending on wants such as entertainment, food, shopping, travel, and hobbies, more than on needs, can affect budgeting and expenses.
Relying greatly on credit cards and using them for non-essential expenses can lead to high interest and continuing debts.
Delaying or ignoring repayments on student loans or other borrowed funds can lead to long-term financial pressure and high interest.
Ignoring savings and not contributing to emergency funds and long-term investments can lead to vulnerable situations at times of unexpected requirements.
With simple yet consistent learning and effort, students can improve financial literacy. Some of these methods include:
The world around us is moving at a fast pace. With lifestyle changes and advancements, proper financial planning is essential to maintain the standard of living. However, proper financial literacy is important in planning one’s life ahead.
From budgeting and financial planning to understanding credit, loans, savings, investing, and more, financial skills are not just useful but crucial in building financial confidence and independence.
So, with this article, we hope that most of you will be clear about why financial literacy is important for students. Remember, getting financial education early helps students make informed decisions, protects them from fraud and scams, and builds a future with financial freedom and confidence.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
You might be familiar with the statement, “Money is not everything, but everything needs money”. Is it true? We guess it is true in all major aspects.
Imagine your life as a car. The various gears of this car represent education, health, happiness, financial independence, love, and many more things you need in life. The gearbox in the car sends power to every gear, but in life, this gearbox is money that ensures those gears are running smoothly.
Without money, challenges can become a never-ending story, and your life can get trapped in survival mode, without actually being able to enjoy it. Occasionally, a lack of money makes life miserable by restricting you from accessing basic needs like food, accommodation, education, and healthcare.
At the same time, money cannot be considered as everything that you need in life. Love, friendship, meaning, and health are as important as money. But even simple pleasures and happinesses, such as celebrating a birthday at home, vacations with friends, or a dinner with family, will require some money to make them possible.
So, money has a crucial role in life, aiding a smooth living. But at the same time, money isn’t everything, but everything needs money.
Are you a bit confused? Let’s sort it out through this article. Since money has such a strong influence, let’s understand why money is important, where its limits lie, and how to strike the right balance.
These days, money is not just a medium of exchange. In many ways, it is similar to a universal language that influences opportunities and access, no matter where you are.
Although at times silent, the presence and influence of money are undeniable in almost all the experiences and requirements in our day-to-day lives. Just think about it. How do you get a good education, healthcare, or even achieve your dreams and passions? In some way or another, money has an important role in achieving all these.
However, it is true that money can’t buy happiness, peace, and love. But doesn’t it help achieve these things more easily? Money can eliminate financial anxiety, offer stability, and grant you the ability to concentrate on achieving success and self-improvement, making life more enjoyable.
So, with sufficient income that meets all your needs, wants, and savings, you can lead a relaxed life, contributing not just for your survival but also for improving your living standards, quality of life, and skill enhancement.
Some of the major benefits offered by money are:
From day-to-day needs like food, shelter, transportation, and education to emergencies like diseases, unexpected vehicle repair, house renovation, and others, money is essential to fulfil our needs, offering a sense of financial safety and security.
This security not only provides ease of living but also enhances the mental peace and emotional well-being of individuals.
One of the major benefits of money is that it ensures financial freedom as well as liberty of choice. With sufficient money, you can decide whether you have to continue a conventional job, start a business, take a career break, or travel.
Moreover, it helps you decide when to retire and what to do afterwards without worrying much about the financial security of your job.
Money has the power to fuel your dreams and passions. As it offers financial security and freedom, individuals can try things they want in life and invest more time to achieve their passions and dreams, even if they do not fall under the conventional category.
But that’s not all. Along with financial backing, persistence, determination, and the ability to seize the exact opportunity are also essential to achieving dreams and passions.
As we have seen in the last section, money does offer various benefits in our everyday lives. However, this does not make money the sole guiding factor of life. Along with money, there are various other things in life, such as human connections, relationships, happiness, love, and more, that offer physical, mental, and emotional well-being.
Warren Buffett, America’s popular investor and philanthropist, had the opinion that even though money brings comfort, genuine happiness comes from important relationships. So, materialism, or the passion for creating wealth, can make money seem like everything there is to life, more than love, friendship, and values. But remember, it’s not always only about money.
As Greek philosopher Aristotle once mused, “Wealth is evidently not the good we are seeking, for it is merely useful and for the sake of something else.” Socrates, another Greek philosopher, also held that the essence of life is not material wealth. These eternal truths remind us that money is powerful, yet not everything.
Having a huge sum of money doesn’t necessarily make you rich. Without healthy relationships, purpose, or good health, life can often feel empty and irrelevant, despite how much money you earn.
So, true richness or wealth is when money, love, success, and contentment co-exist in life. Therefore, it is important that you find a balance between money and everything else in life. Here are some steps to achieve that harmony:
Everyone has different priorities. So, the first objective is to identify your priority. For that, ask yourself what really matters to you. For some, it can be family or relationships; for others, it can be travel, health, or work.
Rank these and direct your resources accordingly. Success is not always in rupees or dollars but also in the profundity of your connections and experiences.
Set financial objectives that support life objectives. If your aspiration is to travel with family and friends, save for it and plan. As mentioned above, priorities differ for every individual. So, after identifying them, you should allocate your resources to your priorities and plan accordingly.
However, proper financial knowledge and strategic planning are required for finalising your financial goals. Platforms like FinQuo Versity, books like “Rich Dad Poor Dad” by Robert Kiyosaki and “Think and Grow Rich” by Napoleon Hill, online webinars, and courses can be utilised for financial knowledge and planning.
No wealth can ever substitute true human connection. Mahatma Gandhi embraced simplicity as part of his political and spiritual philosophy. For him, simple living was not just a personal lifestyle choice but a way to promote self-reliance, equality, and resistance to material excess. Similarly, the Tibetan spiritual leader, Dalai Lama, constantly reminds us that happiness lies in compassion, not wealth.
So, these leaders show that, along with wealth accumulation, prioritising and enhancing human connections are also essential.
Therefore, be around people who love you. Love and companionship are worth more than money, even in a capitalist and consumerist society. Nonetheless, healthy human connections and interactions are essential to improve the mental, physical, and emotional well-being of humans.
Wealth has its roots in health. Even the richest people on earth might feel that their wealth is useless without the resilience to be able to enjoy it.
Spend on healthy food, physical exercise, and preventive medicine. Sustainable habits also promote long-term health and discourage unnecessary consumerism. So, practice healthy eating habits, regular exercise, and periodic health checkups.
Invest more in memories than possessions. The Pursuit of Happyness is an inspiring movie that highlights how resilience, hope, and determination can lead to happiness, even in the midst of financial struggles. Although it is a film and a fictional craftwork, it reminds us that while money is necessary, inner strength and perseverance play an equally vital role in building a fulfilling life.
Moreover, minimalism is gaining more popularity in the modern lifestyle for a reason, as it eliminates distractions and allows individuals to prioritise experience, relationships, and values over consumptive excess.
This also shows that experiences make people wiser, foster emotional health, and add to their narrative much more significantly than mere wealth and possessions.
Money is not everything in life, but everything requires money to keep going.
There is no doubt that money guarantees stability, significant opportunities, and financial freedom. But true success is really in finding a balance between financial success, love, relationships, good health, and memorable experiences.
As Benjamin Franklin, a popular polymath and one of the founding fathers of the United States of America, profoundly put it, “Money never made a man happy yet, nor will it.”
In the end, avoiding family, health, or purpose in the name of money leads to isolation and discontent, destroying your life altogether. At the same time, disregarding financial wisdom may lead to various struggles and an easy target for never-ending anxiety.
However, remember money is not everything, but everything needs money. So, the secret is balance. By aligning your financial objectives with your personal values, living minimally where you can, cultivating relationships, and staying healthy, you can construct a life that is not only financially secure but also emotionally rich and deeply satisfying.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Have you tried earning a significant daily profit, say ₹5000, from the stock market? Have you thought about how to earn 5000 rupees per day from the stock market? Is it really possible?
Although it might seem challenging, earning ₹5000 a day through the stock market is possible, but not guaranteed or assured. By building a practical daily income strategy, utilising technical and fundamental analysis tools, developing strong risk management, and more, traders can try to earn ₹5000 daily in the stock market.
However, will long-term trading methods help achieve this goal? According to our analysis, it’s the short-term trading methods like intraday trading, swing trading, scalping, momentum trading, and others that benefit the most in earning ₹5000 a day through the stock market.
In this blog, let us have a detailed discussion on the strategies and plans that help both novice traders and seasoned traders earn significant profits daily from the stock market.
You might have doubts regarding whether it is possible to earn ₹5000 daily from the stock market. Yes. Trading can earn you ₹5000 a day, but it’s neither easy nor certain.
The most popular and fastest way to attain this goal is intraday trading. But even though this method may offer short-term results, it possesses high risks. In addition to intraday trading, other strategies that may be taken into consideration include swing trading, options trading, scalping, and momentum trading.
However, this ₹5000 daily return can be largely affected by factors like trading capital, risk management, market conditions, sudden market corrections, skills, and discipline. Moreover, it is not a guaranteed source of income or an assurance that you will earn ₹5000 every day.
Same-day trading, or intraday trading, is a short-term trading strategy that has the potential to yield quick profits. It is, as the name implies, the same-day purchase and sale of stocks. So, this approach helps develop a daily income strategy from the stock market.
Moreover, with the right use of real-time monitoring and technical analysis tools, like RSI, moving averages, or Bollinger Bands, and the ability to follow risk management strategies, intraday trading helps navigate trading opportunities in rising and falling markets. Apart from them, chart patterns like triangles, rectangular consolidations, or flat top breakouts also provide strong trading signals.
However, as some of you might know, intraday trading has more risks compared to long-term trading. So, following the 3-5-7 rule will be beneficial for traders. But what exactly is the 3-5-7 rule?
The 3-5-7 rule, also known as the Three Trade Rule, is a simple principle that helps strategise trades more effectively, reducing potential risks. According to this rule, the traders are asked not to risk more than 3% of their trading capital on a single trade, limit the overall exposure of the capital of all open trades to 5%, and ensure that the profit of their winning trades is at least 7% more than their losing trades.
Although not a standardised rule, this is a common practice followed by several traders to reduce risks and losses in intraday trading. However, it is not an official rule approved by SEBI or other organisations.
Along with the 3-5-7 rule, combining strategies like momentum trading, breakout trading, and utilising risk management facilities, with the help of trusted trading brokers like Upstox, Angel One, Zerodha, 5paisa, and others, will help improve trading, maintain discipline, and develop portfolio diversification.
As we have discussed so far, intraday trading used appropriately can help earn ₹5000 per day. However, several techniques and features used in this trading, such as leverage, also include high risks. So, traders must trade responsibly with proper research, market analysis, and expert advice.
Now that you have had a quick overview of intraday trading, let us have a look at some procedures that help you teach how to earn 5000 rupees per day with the stock market. Some of these important steps are as follows:
First things first, learning the basics of intraday trading is essential before entering the market. Various resources like books, webinars, online courses from platforms like FinQuo Versity, expert advice, and more can be utilised for learning intraday trading and improving your financial knowledge in general.
No matter what you use, ensure that they are reliable and recognised by authorities. Once these basics are learnt, intraday trading will be easier for all traders, including beginners, novice traders, and seasoned traders.
Defining your trading goals and developing realistic goals that you can maintain is necessary. As the current target we are speaking of is ₹5,000 a day, set your strategies and plans accordingly.
As trading brokers have an important role in the trades, selecting safe and reliable trading brokers can greatly influence your intraday trading. You can find various popular brokers like Upstox, Zerodha, and more. However, ensure that these brokers are identified by SEBI or other similar organisations before choosing them.
Furthermore, verify the spreads, transaction costs, terms and conditions, and other rules while choosing your trading partner. Moreover, ensure that they provide real-time price updates, alerts, a user-friendly interface, and responsive customer support.
Additionally, always check the margin requirements with your broker, since these vary by stock, segment, and SEBI regulations.
Every successful trader begins with a well-defined strategy. Using technical indicators like the Relative Strength Index (RSI) to track momentum, MACD to confirm trend reversals, and Bollinger Bands to measure volatility, you can develop result-oriented strategies and offer significant results.
Many traders also combine these tools with price action trading to focus on support and resistance levels, candlestick patterns, and volume trends to improve accuracy.
Remember, money is important for all. Therefore, it’s crucial to backtest your strategy using previous data or a demo account before risking real money. This allows you to refine your approach, reduce mistakes, and build confidence.
Pre-market analysis that includes tracking global market trends, overnight movement analysis in different markets such as futures, options, and more, analysing earnings reports, and sector analysis updates helps build a strong base in intraday trading.
In this way, traders will be able to shortlist some highly performing stocks based on volatility, offering better returns in the short run. Moreover, it will also help approach the trade with more confidence.
Even though most traders plan effective strategies and stay informed about the market changes, execution is where they fail. Execution is just as crucial as planning and strategy.
Ensure that you follow your strategies and trade with discipline. It is important that you do not fall for your emotions and end up in revenge trading and emotional trading. Make informed decisions and seek advice from experts if needed.
Risk management features and facilities are the backbone that help every trader mitigate potential losses. Following them and utilising some golden rules, like the 3-5-7 rule, will be beneficial, as they will help keep major risks at bay.
Additionally, portfolio diversification is also a key factor that helps reduce risk. According to this method, you invest in diverse stocks. You can therefore balance the returns from other stocks even if one of them declines.
However, portfolio diversification will be more beneficial for long-term investments due to the power of compounding. When it comes to short-term trades, portfolio diversification can make them more complex and increase the transaction costs. So, this should be considered and taken care of under expert guidance.
The stock market is highly volatile and subject to change every other day. So, not updating yourself on the market trends and practices will seriously affect your trades and returns.
So, always ensure that you refine your strategy, strengthen your weaknesses, and enlighten your financial knowledge continuously through constant monitoring and analysis of your past trades.
Let’s analyse how to earn ₹5000 per day with the stock market and intraday trading:
Assume that you have ₹2,00,000 capital and your selected stock is Tata Motors.
Assume that at 9:30 am, upon opening the market, you purchased 100 quantities for ₹1,000 each.
Assume that at 10:00 am, the share price of Tata Motors rose to ₹1,010.
Sold 100 quantities of Tata Motors shares at ₹1,010 per share = ₹1,01,000
At 10:30 am, suppose Tata Motors’ share price fell back to ₹1,000.
Bought 100 quantities for ₹1,000 each.
At 2:00 pm, suppose Tata Motors’ share price fell back to ₹1,015.
Bought 100 quantities each at ₹1,015 per share
At 3:00 pm, the share price rose to ₹1,035.
Sold 100 shares at ₹1,035 per share = 1,03,500
Total profit of the day = ₹5,000
In this example, you can easily understand how to generate ₹5,000 in a day in the stock market by taking long positions. Similarly, you can take several short-selling positions while intraday trading in a falling market to generate profits.
Profit is highly dependent on the margin used. There is a favourable correlation between the margin and both profits and risks.
The price variation of stock can vary from various factors, including economic conditions, geopolitical tensions, market sentiments, news updates, overbought and oversold situations, and many others. Being attentive to these aspects may help take advantage of the price fluctuations.
Moreover, the above profit example does not include transaction costs, brokerage, STT, GST, stamp duty, and SEBI charges, which can lead to a considerable reduction in the overall profits.
Apart from intraday trading, some other alternatives can be used to make 5000 rupees every day in the stock market. Some of them include:
While intraday trading is the buying and selling of stocks within a day, swing trading is holding the purchased stocks for a few days or weeks. Compared to intraday trading, swing trading does not require the traders to continuously analyse the market, making it less stressful.
Swing traders can often look at company financial statements, management quality, and growth potential to identify fundamentally strong stocks.
Traders can benefit from swing trading if executed using technical analysis tools and risk management strategies. However, the returns from swing trading are not as immediate as intraday trading.
Remember, swing trading doesn’t provide a fixed daily income, but over time, returns could average out to similar levels depending on capital and success rate.
Options trading is another method that helps earn income, mainly through derivative contracts such as put options and call options. Derivatives involve notional investment values far greater than the margin paid, which magnifies both profits and losses.
An in-depth knowledge of margin requirements, market sentiments, and lot sizes will help traders make significant returns from options trading.
However, along with them, a trader should also be skilled in both technical analysis and fundamental analysis to excel and make as much as ₹5000 per day with options trading.
Remember, options trading carries even higher risks than equity trading. Most beginners lose money in options, so it should only be attempted after gaining experience and proper training.
Scalping is a highly active trading style where multiple trades are executed. Usually, these trades are carried out within seconds or minutes based on the slight fluctuations in liquid shares.
It is ideal for traders who thrive on speed, quick decision-making, and fast order execution through reliable trading apps like Zerodha or Upstox.
Although each trade may yield small profits, the sheer volume of trades in a day can add up to significant income. Scalping requires laser focus, an emotion-free trading mindset, and strong control over transaction costs like brokerage fees.
However, for most retail traders in India, scalping is not practical because of transaction costs and execution speed limitations. It is usually viable only for institutional or professional traders.
As we have already discussed, intraday trading comes with higher risks compared to long-term trading. So, it is important that you follow certain strategies and things while involved in intraday trading. Some of them are:
High-liquidity stocks are those that have high demand in the market. So, investing in these stocks will make trading easier, as traders can find buyers and sellers anytime.
Technical indicators are important in trading, as they help understand and evaluate the market trends, momentum, price changes, and more. So, learning the key technical indicators such as the relative strength index, Moving Average Convergence Divergence (MACD), moving averages, and others will help you better plan and execute your trade.
Trading with the trend is crucial to earn ₹5000 per day from the stock market. In short-term trading, moving against the trend often results in major losses. So, analyse the market and move according to it.
Develop a proper strategy that includes risk management features like stop-loss orders, risk-reward ratios, and more, as they help mitigate potential losses more effectively.
Continuous learning is essential in trading in the stock market. Moreover, consistency is also essential as it helps improve daily returns through intraday trading and other short-term trading options.
However, ensure that you maintain emotion-free trading, as emotional decisions can cause huge losses in the stock market.
When aiming to earn ₹5,000 per day through intraday trading, many beginners rush in with excitement but overlook the basics. In this fast-paced style of trading, even small errors can quickly add up to big losses. Understanding the most common mistakes traders make is crucial, as avoiding them can be just as important as finding the right strategy.
As we conclude this article, is your doubt on how to earn ₹5000 per day with the stock market clear? Even though earning ₹5,000 per day from the stock market is possible, it requires more planning and analysis than just luck.
With discipline, risk management, continuous learning, expert advice, and more, traders can achieve their goal of earning ₹5000 a day. Regardless of the trading method you choose, such as intraday trading, swing trading, options, or long-term investing, it is important that you follow a structured approach, manage your emotions, and adjust your strategies as the markets change.
By creating a solid trading plan, utilising risk management facilities, choosing identified brokers, conducting pre-market analysis, and reviewing your performance regularly, you can achieve your financial goals more easily. Remember, in trading, consistency matters more than quick wins. So, stay patient and informed and keep learning about the market without fail.
However, intraday trading and other short-term trading have high risks and might lead to huge losses. So, financial decisions should be taken after proper research, guidance, and expert advice.
Remember, while short-term methods aim at daily income, long-term holding is more about stability and compounding wealth.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
When can you start investing for your retirement? Is it your 30s or 40s? Investing early for retirement has several benefits. However, most people do not think of these potential benefits or start their retirement planning process early in life.
Many put it off because they believe they have ample time left. However, focusing on investing early by making regular contributions and building retirement savings will help you gain more benefits, especially through the power of compound interest.
So, by embracing long-term investments sooner, you can create a strong nest egg that ensures a balanced retirement portfolio, offering financial independence.
But you might be wondering what exactly these various benefits mentioned here are. That’s what we are about to discuss in detail in this article. So, let’s start without further ado and get into the details of the advantages of investing early for retirement.
Proper retirement planning plays a crucial role in determining the living standards and financial independence of retirees. With a lack of a proper retirement strategy, many people are risking their prime age by not saving enough for their retirement. Here are some factors that make early retirement planning important in life.
You can start making contributions to your retirement funds early in life with the right retirement planning. Instead of investing in a single stream, you can consider diversifying your retirement portfolio by splitting your investments among the stock market, mutual funds, retirement accounts, national pension schemes, and more.
Investing in these accounts with proper planning will help build strong retirement investments over time with the help of compounding interest.
Our society has been experiencing an increase in the inflation rate for the past few years. As an ongoing situation, experts suggest that the impact of inflation will affect the cost and purchasing power now as well as in the coming years. So, investing early for your retirement is essential to ensure safe living conditions.
With improved healthcare facilities and medical advancements, the life expectancy of people has improved considerably. The latest data by the United Nations Population Division estimates that the average global life expectancy has increased to 73.5, with slight differences in national averages.
So, these changes show that people need to start saving early and effectively to live a standard and financially independent life after their retirement. With inflation, rising living costs, and other expenses, it is essential that people start saving early without waiting for their 30s or 40s for their retirement.
In the last section, we discussed the importance of retirement planning. However, when is the ideal moment to begin retirement investing? According to financial experts and experienced professionals, starting to invest as early as possible, even in your 20s, will offer various benefits.
However, what are the key advantages of making early retirement investments? Here are some of them.
The compounding effect is one of the biggest benefits of long-term investments for retirement. Compound interest helps investors earn the interest as well as the interest’s interest, offering a multiplied wealth generation over time.
For example, someone who starts investing a fixed amount every month in their retirement account at the age of 25 will receive significantly higher amounts than someone who starts investing the same money at the age of 55.
That is, a 25-year-old investing ₹10,000 per month until their retirement at 60 years with an annual return of 10% will receive approximately ₹2.6 crore. But the same amount invested at the same return profit by a 55-year-old will only receive ₹8.2 lakhs, as their investment period is much shorter compared to the other individual. Thus, market time is more important than market timing, as most banking and financial experts recommend.
So, with compounding interest, you can earn a significant retirement corpus, even with small investments, making it one of the major advantages of investing early for retirement. However, every investment option, whether it be the stock market, mutual funds, or lesser-risk methods like fixed deposits, recurring deposits, or others, has its own risk elements. Therefore, analysing these risks is also important before making your investments.
So, tools like Investor.gov, compound interest calculators, or reliable resources from associated local bank branches will help give a rough outline of how powerful compounding interest is and identify the potential risks. This analysis will help create a proper and effective retirement strategy.
Starting to invest for retirement early will help gain sufficient earnings without a strict and constrained monthly budget. Beginning early means you can begin with smaller investments. You do not have to invest larger amounts every month by reducing your living standards, needs, and wants. So, this reduces the pressure of keeping aside larger amounts of earnings for savings.
The burden of catch-up contributions will also be lessened by early investment. Instead of saving a larger portion of your earnings in your 40s and 50s, you can invest manageable amounts from your 20s and enjoy the perks of compounding.
Furthermore, you can begin investing in riskier portfolios like the stock market and mutual funds at a younger age when your risk tolerance is high and move to safer portfolios like national pension schemes, fixed deposits, and retirement plans in later stages of life when you have multiple things to handle.
The risk tolerance in young people will be higher compared to those nearing their retirement age. Although not always the same, young people can take more risks in their retirement portfolio and allocate more to higher-risk investments, as they have more time to recover from short-term market swings and downfalls.
So, although not guaranteed, by investing in high-risk investments, people can make higher potential returns that help strengthen their retirement plans and beat inflation risks. But keep in mind that there is risk and possible loss associated with every investment. Therefore, it is essential that you assess your level of risk tolerance before making an investment.
As you all know, investing money for a longer period offers more potential returns. Therefore, increasing your wealth over time is one of the most significant advantages of investing early for retirement.
Through an early retirement savings plan, you will be able to develop a strong foundation for your growth investments, such as stocks and mutual funds, and safety nets like pension schemes and retirement accounts.
This extended timeline also allows you to adjust your asset allocation, increase contributions when possible, and protect against inflation risk without putting your financial stability at risk. Over decades, consistent retirement planning ensures you build the right balance of assets to secure long-term financial independence.
One of the major reasons why people, especially the middle class, work longer is the financial issues that they might encounter after retirement. This issue can be overcome by beginning retirement investments earlier in life. Early investment and substantial retirement funds provide you with the ability to choose when to retire.
Moreover, it offers flexibility and convenience when deciding how to plan your retirement life. An individual who achieves financial independence sooner can decide when they want to retire from their conventional job and work for their passion, like starting a business.
Furthermore, as early retirement savings offer more wealth, it helps people enjoy their retirement life by doing their favourite things, like travelling and more, without depending on their families. So, financial freedom and security are other major benefits of investing early for retirement.
There are some common mistakes that most people make while investing for their retirement plan. Let us have a look at them.
Financial knowledge, or financial literacy, is crucial in daily living. However, even today, many people underestimate the role of financial literacy, which can significantly affect retirement strategies.
Improving financial knowledge by relying on trustworthy resources like books, educational resources, courses offered by platforms like FinQuo Versity, webinars, and more has a crucial role in elevating retirement investments.
As we have already mentioned, many people delay retirement investments, thinking that they have enough time in the future. This is a common mistake made by many, which leads to investing catch-up contributions and higher amounts every year.
On the contrary, by investing early, people can reduce the pressure in investing, start with smaller amounts, and even try riskier investment options that offer more potential returns.
Another big error is to ignore inflation and rising expenses. Many of us calculate our retirement savings based on today’s expenses and money value. However, the worth of money now will be very different in the future if inflation continues. In that case, the retirement savings will be less compared to the then expenses and living costs.
Investing in a single stream is yet another mistake. While some invest in stocks, expecting to gain high returns, others invest only in savings accounts and bonds, considering safety. Both these methods are problematic, as they expose the retirement portfolio to unnecessary risks.
However, by diversifying the investment portfolio, you can overcome losses of one investment with the returns of another. So, diversifying the investment portfolio will help cover potential losses, if any.
Before winding up this blog, let us have a quick look at some practical tips for investing early for retirement.
Although not everything, money is important in life. Our blog, so far, has discussed the advantages of saving early for retirement and how essential money is for a better future. So, saving early for retirement not only brings financial benefits but also offers mental peace, freedom of choice, flexibility, and long-term security.
By starting retirement investments early, you can enjoy the power of compounding and smart asset allocation and build strong and consistent financial support that offers financial stability and mental peace. Therefore, the benefits of investing early for retirement are not only about the big numbers and enormous wealth, but they are also about creating a life you dream of and achieving things you longed for.
However, before beginning this journey, ensure that you have adequate financial knowledge, awareness about potential risks, and assistance from experts and experienced professionals.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Are you ready to move beyond living paycheck to paycheck and create a life of financial freedom? Imagine having more than enough to enjoy the rewards of your hard work, without constant stress or sacrifices. With the right steps, you can break free from the middle-class trap and build a future filled with growth and opportunities.
For those who are new to this phrase, ‘middle-class trap’ is a situation that most middle-class individuals or families face. It is when you get stuck in a financial cycle, unable to achieve financial progress.
So, are you also trapped in such a situation? Have you also thought of how to get out of the middle-class trap? If so, you are at the right place.
Through this blog, we will enlighten you on factors that make escaping the middle-class trap difficult for you. We will provide certain strategies and plans that help overcome this situation. Moreover, you can also learn about common mistakes to avoid while handling your finances and more in the current society with rising living costs.
So, whether you are looking for a strategy for financial planning or ways to break free from paycheck-to-paycheck living, this blog will help you achieve your financial goals.
As we have already mentioned, the middle-class trap is a situation where individuals are trapped between payday to payday. In this situation, people struggle to acquire wealth and save for the future, despite the hard work, long working hours, extra jobs, and personal sacrifices.
Such individuals can barely cover their expenses, including education, healthcare, and living costs, leaving little room for savings, investments, and earnings. However, the middle-class trap is not only about income. It is also about the mindset, proper financial management, and strategic planning.
Escaping this trap requires smart financial decisions, disciplined saving, and exploring multiple income streams, allowing money to work for you rather than you working endlessly for money.
Escaping the middle-class trap is challenging because of rising living costs, stagnant wages, and the constant debt burden from credit cards, mortgages, and loans.
Many households live with limited savings, poor financial literacy, and a tendency toward lifestyle inflation. Without smart budgeting, side hustles, or investment diversification, long-term wealth accumulation and achieving financial freedom become very difficult.
In this section, let us have a broader discussion on why it is difficult to escape these issues.
Many middle-class families fear instability and place a higher priority on financial stability than on taking risks and leaving their comfort zones. This fear often makes them conservative about their wealth accumulation, long-term investments, and financial decisions, restricting them to age-old practices.
Even if debt and loans enable the middle class to fulfil the majority of their needs and desires, they also play a significant part in making it more challenging to avoid falling into the middle-class trap. Even though these loans and debts offer instant help, they lead them to a never-ending cycle of earning and paying back.
Middle-class people are mostly trapped in a common notion that hard work pays off. However, in the current world, smart work is more important than hard work. But even then, the middle class values hard work and sticks to it. Moreover, they fear taking risks and seizing the right opportunities that offer a prosperous life.
Having sound financial knowledge is essential for increasing wealth and stimulating the economy. A 2019 National Centre for Financial Education survey found that only 27% of Indian citizens possess basic financial knowledge.
This lack of knowledge restricts people to traditional investment options like FDs, gold, and RDs and prevents them from exploring modern possibilities such as the stock market, mutual funds, and trading, which help in the diversification of income.
Spending more with an increase in income can lead to lifestyle inflation. This can be a major reason why people are stuck in the middle-class trap. It is important to avoid this practice and concentrate on long-term financial goals.
In current society, it is very typical to fall into the middle-class trap. As we have already discussed, there are various reasons for this. But aren’t there businessmen and rich people who once had a middle-class background?
How can a middle-class person become rich? Isn’t it a common question that you have asked at least once in your life? Although it seems to be a difficult task, it is never impossible.
Overcoming the middle-class trap is a continuous process that involves improving economic skills and financial habits and practicing flexible strategies. In this section, let’s talk more about them.
A comprehensive understanding of personal finances, investing, budgeting, and more is essential to escape the middle-class trap. A strategic understanding of financial concepts, proper budget planning, and execution helps improve wealth accumulation over a period of time.
Resources like books, online courses, webinars, YouTube videos, or other resources can help improve your financial literacy. However, relying on credible resources like World Bank reports, platforms like FinQuo Versity and financial advisors, coaches, and planners who can help improve your wealth accumulation by introducing you to passive income sources, profit opportunities, real estate investment, portfolio diversification, and so on, will be more helpful, especially for beginner investors.
Smart budgeting that balances daily needs and household expenses along with long-term financial goals is necessary to overcome the middle-class trap.
Practising a monthly budget plan by reducing high-interest debt and lifestyle inflation and investing disposable income into savings, retirement funds, and other investments like stocks, bonds, and more will help overcome these issues. For this, people can try various budget plans like the 50/30/20 rule, as it helps maintain financial discipline.
Relying solely on one income stream makes it harder to build wealth quickly, especially with rising living costs. So, building multiple streams of income is essential to enhance the financial status, especially for the middle class.
So, along with trying ways to maximise the primary income through bonuses, promotions, and achieving targets, developing a secondary source of income, passive income sources, side hustles, or investments can help improve financial flexibility and stability.
Choosing a secondary income source that aligns with your skills and passions will be beneficial. Nowadays, several side hustles like freelancing, affiliate marketing, vlogging, social media content creation, and more provide ways to earn more money.
Starting to invest will help people switch from maintaining income to building capital. Middle-class families mostly focus on salaries and get trapped in the net worth vs. salary perception trap. It can lead to no long-term financial plans.
However, changing from this approach to a salary vs. wealth mindset will help people acquire more wealth over time. For this, growing home equity, real estate investments, and investing in modern options like stocks, bonds, and emerging digital gold investments will be considerable. Through these investments, you can utilise the power of compound interest and earn significant profits.
Remember, all investments carry risks. So, people must assess their risk profile and develop a balanced strategy for financial planning that overcomes inflation, potential challenges, and losses.
Falling into financial pitfalls and money traps or relying heavily on debts are some of the common issues that make escaping the middle-class trap more difficult for people. Taking loans and debts is common, especially in middle-class households. However, it is important to prioritise the repayments as soon as possible.
Minimising these debts through timely repayments, avoiding further loans and high-interest loans, and rethinking behavioural financial mistakes that might lead to overspending is crucial. By practising these things, individuals can get one step closer to saving and building capital.
An important step in overcoming the middle-class trap is maintaining an emergency fund. Unexpected expenses and emergencies like medical requirements, vehicle repair, job market unpredictability, and so on are mostly what force middle-class families to fall into money traps like insecure loans, high credit card debt, and others.
So, maintaining an emergency fund of at least 6 to 12 months of expenses will help tackle such situations and avoid taking high-interest loans. So, set aside a small portion of your monthly earnings for emergency funds. Over time, these savings will help you manage unexpected expenses.
Escaping the middle-class trap is not only about money management. It also includes building a strong network and relationship. Strong connections help open doors to career growth, business collaborations, and additional income sources, making it easier to move up financially.
With the right connections and relationships, it can be easier to find jobs, begin a business, or earn freelance jobs in the gig economy. However, common men or middle-class individuals mostly do not focus on building networks.
However, changing this common mindset from self-preservation to leveraging opportunities and building connections will have significant value in improving your financial stability.
So far, we have discussed several practices and factors that will help improve a middle-class man’s financial status. In addition to them, staying focused on your financial goals and maintaining discipline in your economic decisions are essential to overcome the middle-class trap.
Along with developing a monthly budget and spending plan, ensure that you stick to it by avoiding overspending and unnecessary expenses. Moreover, stay updated on the financial trends and seek advice and guidance from coaches and advisors.
Here are some of the common mistakes people commit that make escaping the middle-class crisis more difficult.
Before winding up this article, here is a quick action plan to improve your financial condition.
Tracking all the expenses, preferably at the end of every week, will help you have a detailed understanding of your income and expenses. So, with this information, you can develop a more realistic budget, which you will be able to follow without fail.
As we have already discussed, emergency funds are very crucial in maintaining financial balance. Every individual must have at least 6 months’ expenses as emergency funds, because they help tackle sudden financial needs.
Develop side hustles and passive income sources based on your interests and skills. They help increase your earnings, helping you invest more in savings.
Along with timely repayments of existing debts, try not to take up new loans.
Not just invest once in a while. Ensure that you save a certain amount every month, no matter how small it is. With this, you can begin investing consistently.
There is no denying that money plays a crucial role in every individual’s life. However, middle-class individuals and families struggle with their regular expenses and are mostly stuck between paydays and pay cheques. So, this article has discussed some of the various factors that lead to this situation. Moreover, we have also discussed some strategies that can help answer a common query on how to get out of the middle-class trap.
So, the journey of escaping the middle-class crisis or trap can seem challenging. However, it is never impossible. With the right strategies, proper budgeting, improving financial literacy, creating multiple income sources, and continuous investing, you can tackle the middle-class trap.
Moreover, governments and policymakers in developing economies often highlight innovation ecosystems, diversification of income, and strategic financial planning as solutions to reduce the productivity growth gap and strengthen household stability.
However, remember, every investment and financial decision should be taken with utmost care and analysis. Ensure that you are financially literate and update your financial knowledge over time. Always verify the terms and conditions of the investment plans before investing and seek help from experts and financial advisers. So, with a little attention to detail and analysis, everyone can overcome the middle-class trap.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
The stock market in India has been witnessing rapid growth in the past few years. With an increase in online trending platforms, improved retail trading, and stronger regulations by SEBI, more Indians are entering the stock market.
According to the latest Investor Behaviour Index (IBI 2025) by StockGro, in collaboration with 1Lattice, 45% of people under 35 years of age are considering stocks and equities as their primary investment. However, a section of people still stay away from the stock market and other modern investments. What might be the reason for it? Is it the lack of knowledge or the fear created by some popular myths?
Even then, a significant number of people are searching for apps that teach trading on the stock market. Are you one among them? Has the long list of apps put you in more confusion? So, from this list, how do you choose the best app to learn stock market in India?
Remember, what’s best for you might not be the most suitable for your friend, as they might be in search of something else. That’s when FinQuo Versity might be able to help.
FinQuo Versity is one of the dedicated money education platforms focused on Indians. Considering the ever-evolving market conditions and financial changes in India, FinQuo Versity has invested in helping people improve their financial literacy and learn about investment opportunities like the stock market, mutual funds, and more.
So, in this article, let us find out why FinQuo Versity can be considered one of the best trading learning apps for Indians.
Learning the stock market might not be an easy task in the initial days, especially for those new to the financial and investment fields. So, choosing the right app to learn share market is crucial, as these platforms are your partners in investments.
In this section, let us have a detailed discussion on why it is important to choose the right stock market learning app.
FinQuo Versity is one of the popular financial education apps in India. It is a one-stop solution to improve your financial knowledge through workshops, online courses, community programmes, and other features.
Inclusive to people of all ages, this platform ensures that individuals gain proper guidance on all aspects of stock market investments, including different types of trading such as options trading, portfolio management, technical and fundamental analysis, market trends, and more. Users can also learn the steps and procedures involved in opening a demat account, insights into brokers, and reliable trading platforms.
Furthermore, the courses and programmes available on this platform offer a strong foundation in the stock market by educating on basics like derivatives, shares, bid and ask, brokers, IPO, SIP, and so on.
So, with experts and professionals with years of experience in the financial industry, FinQuo Versity helps build a society with strong financial knowledge and effective financial management skills, including beneficial spending and saving habits, investment strategies, and wealth creation methods.
We have already discussed some features and qualities that make choosing a good app to learn about stock market. Through this section, let us find out how many of these features are offered by FinQuo Versity. Some key features of this comprehensive money education platform include:
What are the advantages FinQuo Versity has in store for its users? Let’s have a quick look at it.
We have so far discussed some of the unique features and facilities offered by FinQuo Versity. However, one of the important aspects of this financial education platform that makes it different from other similar apps is the vast topics and easy-to-understand study materials that it offers. lifetime access to users. So, once users purchase any course from this platform, they can access it from anywhere and anytime, for as long as they need.
Moreover, there are a lot more features that many share market learning apps offer. FinQuo Versity helps reduce the learning curve in its target audience.
With numerous stock market learning apps in India, selecting the right app for your trading needs can be overwhelming. However, with FinQuo Versity, you can enjoy learning the stock market and its details through a comprehensive curriculum, professional guidance, a user-friendly interface, and customisable tools.
Moreover, you can have lifelong access to the purchased course and be a part of community interactions, helping you approach the real-world stock market with confidence.
As we have already discussed, choosing the best trading learning apps is crucial. So, finalising your platform ensures that it offers comprehensive coverage of all the important aspects of the stock market, its theoretical concepts, and practical examples.
Alongside traditional investments like FDs and gold, let us explore higher-return options like stocks and mutual funds, while keeping risks in mind, marking the foundation for your financial literacy.
However, do not forget that these investments have some inherent risks. So, gain maximum knowledge, thoroughly analyse the market, take advice from experts, and stay within your risk tolerance capacity.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Being a student and living under the protection of your parents is all fun up to a certain age. However, over time, asking money from parents for your hobbies, interests, and day-to-day activities might feel uneasy and burdensome.
So, how can one stay out of a position like that in life? We are here to help you. In this article, we will discuss how to be financially independent as a student.
Whether you are a student or a grown-up individual, financial freedom is essential, as it provides freedom of choice and the power to decide what to do and what not to do in life. Interestingly, the Gen Z population is showing more interest towards financial literacy, budgeting, and early investing.
So, let us get into the depths and learn how to be financially stable as a student.
Financial freedom for students means the ability to manage the daily expenses, including studies, bills, food, accommodation, transportation, student loans, and more, independently. However, along with meeting bills, it is also about managing expenses, saving money, and at times investing for future needs.
Is achieving this financial independence easy for students? The answer might be no. With limited income opportunities, academic pressure, and increasing living expenses, students might struggle to find a balance in the beginning.
Despite the challenges, achieving financial independence as early as possible has a long-term benefit to offer. So, by practicing budgeting methods like the 50/30/20 rule and other strategies, slowly but gradually, students can lead a life without financially depending on their parents.
Not only does this make them more free, but it also teaches life skills like budgeting, avoiding unnecessary expenses, handling real-life responsibilities, and more.
As we have already discussed, becoming financially independent from your parents can feel like a Herculean task in the beginning. However, with small steps and constant efforts, you can make a big leap in the long run.
In this section, we will discuss it in depth. Let’s start by broadening our discussion to include the potential steps you can adopt to become a financially independent student.
The first and foremost step in becoming a financially stable individual is building smart money habits. You can reach your financial objectives more quickly if you develop better money management practices early in life.
Here are some basic things you can focus on to develop better financial management skills.
Proper budgeting has a prime role in making people financially aware and independent. Utilising money and categorising it into needs and wants are important life skills every student should develop, even if they haven’t started earning.
There are various budgeting techniques, like the 50/30/20 rule, that can aid in better financial management. According to this rule, 50% of the earnings or money should be allocated to the needs or essentials for day-to-day existence.
From the remaining 50%, 30% should be allocated for wants such as entertainment, shopping, hobbies, and more, while the last 20% should be contributed to savings.
Although the 50/30/20 rule is one of the easiest to follow budgeting plans, students might face difficulty in following it due to limited income. In such cases, you can adjust it according to your needs and change the pattern into 60/30/10, 70/20/10, or likewise.
However, always remember to make realistic budget plans and stick to them. You can use budgeting calculators to plan and visualise weekly and monthly expenses and develop effective budgets.
Along with setting a realistic budget plan, it is important to analyse where and how you spend your money. Take note of all expenses and savings every week and evaluate daily spending, as it helps to identify unnecessary expenses and plan spending accordingly.
You can track your expenses by taking notes, jotting them in your phone, or using expense tracking apps like YNAB, PocketGuard, Goodbudget, and a spending and budgeting tool.
Finding a source of income, no matter how small or big, is important to become a financially independent student. There are various income sources that are suitable for students.
Let us have a quick look at some popular income sources beneficial for students.
Students taking up part-time jobs is a common practice seen worldwide. From simple positions as administrative assistants to occupations in cafes and libraries. These jobs are mostly flexible, helping students to balance both studies and work.
Even if the earnings from part-time work cannot contribute much to savings, they will definitely help students meet their basic needs and daily expenses.
Paid internships are one of the best ways to earn while continuing your studies. You can find short-term and long-term internships that align with your educational qualifications.
Internships have multiple benefits. Along with offering a source of income, these internships also help gain professional experience for the future.
However, not all internships are paid. There are unpaid internships as well. Some unpaid internships might offer stipends to cover travel and food expenses. But in some countries, unpaid internships may even be restricted or regulated by labour laws, so always check your local rules.
Students can find various on-campus jobs like that as a research assistant, teaching assistant, helpdesk assistant in the Students’ Union, and more.
As these jobs are on the campuses, students will be able to easily manage their classes and schedules with the work if they choose on-campus jobs.
Plenty of freelancing and online jobs are available today. Taking up these jobs will be helpful for students, as they can work depending on their availability and convenience.
With a wide range of jobs like writing, tutoring, designing, and more, you can convert both your passion as well as profession into freelance jobs.
However, not all freelance or online jobs can be done at your convenience. Some of them might have time constraints. So, select those jobs that are convenient and manageable according to your classes.
You can find these jobs from career and placement cells and platforms like LinkedIn, Indeed, Fiverr, Upwork and others. But always stay updated with continuous CV checks, attend mock interviews, and seek career advice from experts and accredited life coaches, as it will help improve your job hunt and overall living.
Apart from jobs and internships, students can make income from passive sources like blogging, YouTube, print-on-demand designs, and more. Similarly, small businesses like handmade crafts and thrift stores can also be a good side hustle for students.
Reminder: Students can better understand where their money is going and increase their savings by keeping a basic cash flow system and monitoring their income and expenses.
Student-specific scholarships are another major source of income during student life. You can find various scholarships to uplift certain communities, offer financial resources based on merit, and more. These scholarships help reduce student debts, support economic needs, and improve student performance.
Earning alone will not help you become financially independent. Along with it, you should also cut down on unnecessary expenses and start saving money for your future needs and emergencies.
Here are some methods and facilities that help students cut down their living costs without lowering their quality of life.
Student discounts are one of the most beneficial things that help reduce their living costs. Many services, including essentials like transportation and entertainment, such as Spotify, Amazon, Adobe, and more, often come with student discounts of 10% to 50%.
Students can cut short their expenses by reducing spending on food.Consider cooking at home rather than ordering takeaway. This helps save a large amount of expense. Moreover, practice meal prepping on weekends, as it helps make things easier, even on busy days.
Instead of living alone, sharing housing space with roommates will help reduce accommodation costs, as you will be able to split expenses.
Another method that helps reduce housing costs is opting for on-campus accommodation. Not only is it more affordable compared to other accommodation options, but it also cuts short transportation costs.
Minor changes in lifestyles and shopping will also help students cut their expenses. Instead of recharging various entertainment streams, look for offers that are included with your phone plan. Also, look for student bundles or family plans that reduce costs.
Another important thing is to reduce impulsive shopping. Always ensure that you really need the thing before buying it. Establish a 24-hour waiting period before buying something. This will help you identify whether it is a need or emotional buying.
Starting savings, even in small amounts, will be the foundation for future savings. So, students can also have savings plans like:
Many banks offer special student-friendly accounts, often with zero balance or with reduced fees, though this varies by institution.
However, before starting a bank account, ensure that you check all the terms and conditions. Additionally, even though some banks may offer special student-friendly benefits such as zero-balance accounts or fee waivers, this is not guaranteed by all banks and financial institutions.
Develop an automated savings scheme. That means setting up a system where a percentage of your earnings, student scholarships, or stipends is automatically transferred to a savings system.
No matter how small your savings are, follow this practice, as it helps develop discipline and saving habits in students.
A sudden and unexpected expense like a medical emergency, laptop repair, or unplanned travel can break the financial balance of students. So, save up for such emergencies by maintaining an emergency fund.
Initially, you might only be able to save up small amounts. However, save more when possible. Ensure that you have at least one month’s living costs saved up in your emergency fund.
Debts are a reality of student life. It might be difficult for most students to manage these debts alone. However, proper planning and responsible decision-making will help students manage their debts wisely.
You might need student loans for your higher education. However, borrow only what you need. As loan repayments can be a hectic task, ensure that you do not take maximum loans if not necessary.
Additionally, look into your options for repayment and see if you may start with interest-only payments. Students can explore loan consolidation, income-based repayment plans, or use simulators like Federal Student Aid’s loan calculator by the US Department of Education to plan repayments effectively
Students can apply for credit cards with modest limitations from some financial organisations. You can use these resources to raise your credit score. To prevent interest, make sure you can pay back the loan on time.
Keep in mind that utilising credit cards improperly can result in rapid debt traps. So, use them only if you are confident about timely repayments. Moreover, the laws regarding the credit card issuing for students might differ in different countries.
So, analyse them well in advance, as some countries offer credit cards for students only if they have an income source or a co-signer.
Pay off bills and utility fees like water, electricity, WiFi, and others without fail. Late payments can lead to high interest.
You can consider setting reminders to pay off bills on time and setting up automatic payment options to manage.
Along with handling debts wisely, it is also important to stay away from debt traps. You might come across payday loans and fast lending applications that may provide loans with less hassle. However, they come with higher interest rates.
Although these loans might be tempting, ensure that you do not fall for them.
Students usually consider investments as a grown-up man’s thing. However, by taking advantage of compound interest, early investing can aid in achieving financial independence. But remember, proper financial knowledge and guidance are required to start an investment.
Some popular forms of investments, like the stock market, crypto, and forex trading, might seem to offer huge profits within a short time. However, do not invest to chase profits. Instead, learn about the basics of investing from expert financial advisors.
Crypto and forex are high-risk investments. So, as beginners, choosing low-risk investment plans like mutual funds, index funds, and SIPs will be better for students.
Moreover, the availability and legality of crypto and forex trading vary greatly from region to region, especially in the case of students. So, researching the legalities of your investments before making a final decision is important.
Alongside, students should also consider having basic insurance, like health insurance. These insurances are important, as they help secure our savings and financial stability in times of emergencies. So, even if you encounter a medical emergency in the future, you can take care of it without breaking your savings.
You can consider taking certification courses, attending webinars, and enrolling in online courses offered by platforms like FinQuo Versity. This will help you understand the market and make informed decisions, reducing potential losses.
Balancing studies and financial responsibilities can be challenging. However, with the right approach and proper planning, you can succeed in both these areas.
Money is important in our lives. However, more than just making enough money to meet daily expenses, becoming financially independent from your parents early in life offers students several other benefits. Some of them are:
Learning how to be financially independent as a student is far more than just learning how to meet daily expenses. As we have already discussed in this blog, becoming financially independent is also about learning to meet expenses, saving money for future needs, cutting short unnecessary expenses, and understanding investing.
With part-time jobs, internships, passive income, and on-campus work, students can reduce their dependence on parents and eventually gain freedom of choice. However, along with developing financial freedom, it is important to prioritise education as well as physical and mental well-being.
So, with proper planning, guidance from financial experts and life coaches, and various trial-and-error methods, students can experiment with different methods that help them become financially independent early in their student life.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
How important is money in an individual’s life? You must have heard people say that money can’t buy happiness or that money isn’t everything. If that’s how it is, why are almost all of our day-to-day activities in one way or another connected to money?
Zig Ziglar, a famous American author, once said, “Money isn’t everything, but it ranks right up there with oxygen.” Whether it’s the meals we eat, the clothes we wear, or the life and work choices we make, money influences nearly every aspect of our lives in subtle but impactful ways.
So, why is money important in life? Let us have a detailed discussion on it. Moreover, this blog will also guide you through the true value of money and how to use and save it. We will also discuss the emotional side of money and how it affects daily lives. So, let’s get into the depths of money.
Beyond materialism, money has an essence and value. Although material possessions are unavoidable, money offers a lot more value, like financial independence, peace of mind, the pursuit of dreams, and quality of life. Let us explore them in this section.
Rather than a goal, money needs to be a tool that guides you through your day-to-day activities. As money has the power to influence the mental peace and well-being of individuals, it’s important that you know how to handle it properly.
Instead of making money and using it to satisfy greed, effective utilisation and saving of money offer more financial freedom and mental peace. With proper savings to meet unexpected expenses and emergencies comes financial security, offering an improved quality of life.
“Money is better than poverty, if only for financial reasons.” – Woody Allen, American filmmaker and actor.
As mentioned earlier, money plays a vital role in meeting our basic needs. Whether it be food, shelter, healthcare access, or basic education, money is important in all these cases. Without sufficient money, even the most basic needs feel like a burden. So, money ensures the basic needs of individuals.
The same is the case with emergencies. Life being so unpredictable, people can encounter emergencies like health issues, job loss, or a family emergency, which can put them in a crisis. However, having money can significantly ease the burden of such situations. So, money not only buys things but also offers emotional stability and peace.
In the previous section, we talked about the basic needs that money fulfils. But is life only about basic needs? Money is not only for basic needs and survival, but it is also for growth and personal development.
Once the basic needs are met, you can use your money in various investments like equity funds, FDs, or other deposits. It can also be used to sign up for a course, get assistance from a coach, buy books, travel, or go for therapy. These are investments that help improve productivity, enhance happiness, and support long-term well-being.
As Henry David Thoreau, a famous American essayist, poet, and philosopher, said, “Wealth is the ability to fully experience life.” That couldn’t be more accurate, right? Although we talk about financial freedom, money also offers more. With sufficient savings and wealth, you will have the power to decide how to live your life.
You can take a break from your career, spend more time with family, go on a trip, or relocate to a new place without panicking over your next payday. Moreover, you will gain the ability to support friends and family with reduced financial stress. So, isn’t it one of the greatest positives of money to gain control over time and life?
Money helps you engage in philanthropic activities and donate to charitable and good causes. These donations help support communities and make meaningful changes in society. So, with these activities, money transcends far beyond materialism.
Money serves as the driving force that fuels our chase for dreams and passions. Although it’s often said that money is not everything, it does help gain access to resources that help you secure your dream job, take a trip to your favourite destination, or begin a business of your choice.
However, even though money opens doors to your dreams, you also need to seize the right opportunity and have sheer determination to convert those dreams into reality.
Financial stability is very essential, isn’t it? Is it just about keeping your bills and payments? No, with financial stability, you experience changes in how you perceive life, shifting from survival to growth. Let’s have a detailed discussion on it.
Once you start receiving a consistent income or your finances are more stable, you will be able to make stress-free decisions, whether they be related to your career, lifestyle, investments, or entertainment.
With a stable financial status, you will be able to focus on your long-term investments and savings rather than worrying about the immediate expenses and needs.
If you are financially stable, you will be open to more opportunities. Apart from living for your needs, you will be able to take calculated risks to begin a business or convert your passion into your profession.
However, to gain this level of financial stability, you should be aware of financial aspects. So, improving your financial knowledge with expert assistance is essential. You can seek help from platforms like FinQuo Versity to improve your financial knowledge, as they offer educational resources, financial courses, and other sources; they provide help with all aspects of finance, including budgeting, saving, and investing.
As we have discussed so far, money has various practical benefits, such as better opportunities, security, and personal growth. However, it also has an emotional side. Money largely affects the emotional aspect of individuals, for better or for worse.
While financial stability offers a sense of confidence and opportunities to invest in oneself through personal development, some people consider it a symbol of self-esteem. Although this might be good at times. It can also lead to anxiety, shame, and a feeling of failure when encountering a financial struggle.
While money opens doors to opportunity, unequal access to financial resources still creates barriers to education, career growth, and upward mobility, contributing to broader inequality of opportunity.
Furthermore, money can also be a reason for disputes and disparities in a family, especially when the concepts of saving, spending, and investing are different among partners. So, it is not only about learning how to earn, spend, save, and invest money. It is also about learning how to deal with the emotional aspect of it.
We have already discussed the importance of money in our day-to-day lives. So, it is clear that money does have a role in the happy life of an individual. However, is there a limit to the money we need?
Although money brings happiness, it does not mean that money is the presiding factor in making someone’s life happy. A sufficient amount of wealth that helps to meet the needs and offer financial stability is important for every individual. It is only then that people will be able to seize opportunities and lead their desired life without worrying about daily expenses and needs.
However, even though more wealth offers more luxurious lifestyle choices, it does not guarantee a happy life for everyone.
A survey was conducted by Ipsos back in 2019 on whether more money brings happiness to people. While 45% of participants shared that more money gives them the greatest happiness, 13% of respondents were against this statement. So, this survey reveals that more money is sometimes too much money, at least for some of us.
Therefore, more than an abundance of wealth, humanitarian values, healthy living conditions, mental well-being, a loving family, an independent life, and more are valued by many.
So far, we have discussed various aspects and the importance of money in life. Given everything we’ve explored, would you say that money is the most important thing in life? Yes, money does have various benefits. It supports personal growth, offers freedom and choices, helps to pursue dreams and ambitions, and aids philanthropic activities.
However, to enjoy these benefits, it is important to have an understanding of one’s income, plan expenses accordingly, maintain proper budgeting plans, and avoid unnecessary debts. Is that all? No. Along with proper money management, people should also be able to deal with the emotional aspects of money to better enjoy its benefits.
The famous Irish author and poet, Oscar Wilde, once quipped, “When I was young, I thought that money was the most important thing in life; now that I am old, I know that it is.” So, remember, the role of money in our lives is huge, but the ultimate aim is to understand the true essence of money and use it as a tool that helps improve freedom, quality of living, and mental peace.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Have you ever thought of starting a business of your own? Who doesn’t? Most of us have dreamt of becoming entrepreneurs at least once in our lives, especially women. You might have felt that you have an incredible business idea, but are confused about where to begin.
You are not alone in it. Most people, especially women, forbid themselves from starting their dream business only because of the chaos and confusion of the initial days. Let us tackle it now.
You do not always need degrees, except for specific businesses related to law, finance, or tech, huge investments, or well-established office space, to begin your business journey. Then, how to become a businesswoman? It is about seizing the right opportunity, learning from your mistakes, and staying consistent in your work.
In this blog, we will walk you through the steps involved in beginning a business and the government policies and schemes that benefit women entrepreneurs in India. We will also discuss some popular businesswomen as well as some business ideas women can consider.
As Michelle Obama wisely stated, “Success is only meaningful and enjoyable if it feels like your own.” With that in mind, let’s explore business ideas that not only generate income but also leave a meaningful mark on society.
Achieving success as a businesswoman is a challenging journey. It’s a long and persistent journey that requires ambition, passion, strategy, consistency, and resilience. Whether you are starting from scratch or taking up a corporate business, it is important that you have clarity in your plans, a well-developed strategy, and bold decision-making skills.
If you’re just starting out in this field, it’s natural to feel overwhelmed with questions and uncertainty. But you need not worry, as this section will offer a step-by-step guide that helps you be a smart businesswoman. Remember, no matter what your educational background is, if you have the itch and taste for entrepreneurship, proper guidance and planning can help you excel.
So, let’s get into those details.
Doing things that you love helps you excel and enjoy what you do. So, passion has a crucial role in your business success. In a highly competitive world, you need to be passionate to reach the top. Therefore, the first step in building a business is finding your passion.
However, finding your passion might not be as simple as it seems. While some have a clarity of what they like and what they want to do, others might lack this clarity. But let us help you identify them.
Improving your financial knowledge is essential before starting a business. With the right knowledge about budgeting, saving, and investing, you can tackle the potential financial challenges you might encounter in the future.
However, not many people around us are financially educated. So, seeking help from platforms like FinQuo Versity will be beneficial. They offer various courses, educational resources, and other materials that improve financial knowledge and literacy.
Your skills and expertise are the key factors that help you be a strong businesswoman. Before starting your business, make sure that you have polished your skills to meet the requirements of your business. Be confident about your knowledge and expertise.
Explore the various courses, certification programmes, webinars, and other resources that help you upskill yourself. Think of the possible ways that help you mould your skills through practical scenarios and real-life situations.
Apart from the subject knowledge, let’s have a quick look at the important skills you need to thrive in the business world.
After identifying your passion, you have to finalise a business idea that suits your interest and passion. Conduct a detailed analysis of the market trends, targeted audience, and audience acceptance before finalising your business idea.
Additionally, consider whether your product or service taps into a passion or provides a solution to a particular issue. Furthermore, consider the following points:
On the other hand, if the product has a growing market, you can earn potential benefits over time. So, before choosing your business idea, analyse these factors.
Remember, a strong business plan must feature a Unique Selling Proposition (USP) to make your business stand out from the rest. It has a major role in influencing your target audience. So, ensure that you select your USP efficiently.
Once you have settled on your business idea, the following step is to develop a well-structured and impactful business plan. This helps to navigate the potential challenges and complexities in your business journey.
Take a look at a small guide on developing a solid business plan.
The next step is to fund your business. Strong funding is essential to begin a business from scratch. As mentioned earlier, prior financial management helps you identify your funding needs. If you’re planning a scalable startup with long-term growth potential, you can also consider approaching Venture Capitalists (VCs) who fund early-stage, high-growth companies.
Here are some common funding methods you can opt for.
Registering your business is also important. However, not all businesses need an MCA registration. Private Limited Companies and LLPs must be registered with the MCA before launching. However, sole proprietorships and partnerships may not require MCA registration. They can start with minimal registration, like UDYAM, GST, etc.
However, ensure that you have all the necessary documents before registering. Do not forget to register for GST and other tax implications, as they may cause complications in the future.
Below are the things to consider while registering your business.
Scaling your business is important. However, instead of starting big, it is always advised to begin small with a Minimum Viable Product (MVP), with the help of seed funding, and then scale the business to greater heights.
Begin at a smaller scale and analyse the market trends and customer reactions. Later, establish a proper business plan and growth strategy, and then scale your business to reduce risks and losses.
Marketing or promoting your business is very crucial, as it attracts more customers towards it. So, you have to prepare a proper marketing strategy that includes trending ideas, with the necessary tools, campaigns, social branding and online platforms.
Consider the following marketing strategies to expand your business’s reach to a wider audience:
Similar to building and establishing your business, it is also important to maintain a proper work-life balance. You have to make sure that you set rules and prioritise both your personal and professional life equally. The points below might help you with it.
The Indian government offers various programmes and grants that help increase startup opportunities among women, helping them become businesswomen who lead others. Let’s have a quick look at them:
Stand-up India scheme is an Indian government initiative that offers loans and assistance for women, Scheduled Castes (SC), and Scheduled Tribes (ST) to start new businesses. According to this scheme, the eligible people can gain loans ranging from 10 lakh rupees to 1 crore rupees.
This scheme is developed mainly for greenfield enterprises. Furthermore, according to the official website, borrowers need to provide at least 10% of the project cost to be eligible for this scheme.
Pradhan Mantri MUDRA Yojana is a governmental programme that offers loans for women business owners. This grant has various schemes customised for different businesswomen, like micro-business owners, Small and Medium-Sized Business (SMB) owners, and ambitious entrepreneurs.
Based on the businesses, the grant amount also varies from 50,000 rupees to over 10,00,000 rupees, ranging over different categories such as Shishu, Kishor, and Tarun.
An initiative by the Small Development Bank of India (SIDBI), the Mahila Udyam Nidhi Scheme was introduced to encourage the entrepreneurship of women. This plan, which offers up to 10 lakh rupees, was first launched by Punjab National Bank by SIDBI and later expanded to other lending and financial institutions.
Connecting and interacting with like-minded people will be beneficial in your career, especially when building a new business from scratch. There are various women entrepreneurs who have excelled and set an inspiration for upcoming budding businesswomen. Let’s discuss some of these people.
A popular name in the Indian business world, Falguni Nayar is a strong influence for budding businesswomen. Falguni Nayar, the founder of the well-known Nykaa Fashion, left her investment banking career and started her brand when she was 50 years old.
Oprah Winfrey is highly regarded as a prominent personality in the world of media. Starting off as a TV personality, Winfrey turned to entrepreneurship in 2000 by co-founding Oxygen Media. She hosted her talk show until 2011 and now serves as the CEO of the Oprah Winfrey Network (OWN).
Whitney Wolfe Herd is an inspiring businesswoman who became a prominent figure in the male-dominated tech industry. She started off as the co-founder of Tinder, a dating app. But later left Tinder and began her own company, Bumble.
Upasana Taku, a well-known Indian entrepreneur, has played a significant role in driving the fintech revolution in India. She co-founded MobiKwik, a digital platform focused on facilitating online payments. Upasana made a large impact in India through her initiative, proving that women entrepreneurs can excel in the fintech field as well.
Before winding up this blog, let us discuss some of the top business ideas that can offer a side hustle or startup opportunities for women in India. From home-based businesses to small-scale and startups, the opportunities are endless in our contemporary society. So, let’s have a look at them.
Building your own empire in the business world is not a distant dream anymore. With the right mindset, strategic planning, and proper mentorship, you can also become a successful businesswoman, breaking all the conventional barriers and stereotypes.
We hope this blog has given you a comprehensive guide on how to begin your journey to be a successful female entrepreneur. Additionally, we have also discussed the government programmes that help women entrepreneurs in the country, the success stories of some inspiring businesswomen across the world, and some interesting and beneficial business ideas.
Many women hesitate to begin their entrepreneurial journey due to the fear of failure or intense competition. But with the right support system, you can overcome self-doubt and avoid burnout while building a fulfilling career.
However, remember, success is not something that can be achieved overnight. It needs sheer passion, consistency, and hard work. So, whether it be flagging off your business journey or business scaling, it’s the small but persistent work that counts.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Have you ever wondered how to save money with a 20,000 salary, with your bills, EMIs, and other expenses waiting for you? If so, you are not alone. While a 20k salary presents challenges, it also encourages smart budgeting and creative ways to manage rising living expenses.
But what if we told you that you can save a small portion of your salary for your future needs and emergency expenses? Yes, whether your salary is 20k or 200k, making minute changes in your spending habits, budgeting techniques, and lifestyle will help start your saving habit.
This guide will walk you through practical methods and strategies to help you manage a ₹20,000 salary effectively while building your savings. Wondering about the best ways to save and invest on a limited income? Don’t worry, we’ve got you covered.
Ready to make every rupee work smarter for you? Here’s how you can make the most of your ₹20,000 salary and turn it into a tool for financial progress instead of a limitation.
People normally think that it is impossible to save money with small salaries. But is it true? Is it possible to save money from a 20,000 salary? Yes. According to financial experts, with methods like the 50/30/20 rule, save-then-spend rule and other strategies, saving money with a 20000 salary is possible.
However, it takes discipline, planning, budgeting, and a little bit of lifestyle changes to achieve this goal. You need to plan your spending, initiate smart investments like mutual funds, PPFs, PFs, and more, cut short unwanted expenses, and more to budget a 20k salary.
Although salaried people might find these changes and strategies a bit difficult at first, in the long run, these savings will be helpful in maintaining emergency funds and additional savings. Interestingly, Gen Z and millennials are slowly picking up these habits, turning into budget-conscious individuals.
In the coming sections, let us discuss the different savings strategies, investment plans, and budgeting methods that help make saving money from your salary more effortless.
Identifying and categorising your monthly expenses and spending are essential to improving your savings. This helps you recognise where you might be overspending and identify unnecessary costs that can be trimmed or avoided altogether.
Once these expenses are identified and your spending is categorised, you can better strategise budgeting methods like the 50/30/20 rule and the save-then-spend rule.
Here are some points that will help you identify and categorise your spending.
Keeping track of all your expenses is essential to identifying and managing your spending and savings. Keep a diary or a mobile application to note down all your expenses. Include everything, including the small expenses like buying a snack or recharging your mobile phone.
Splitting the expenses into needs, wants, and investments will help improve your savings strategies. Through this method, you can identify your unavoidable as well as unnecessary expenses and manage them accordingly.
Set limits for every expense, like needs, wants, and savings, and stick to those limits. You can make use of money management apps like Mint, You Need a Budget (YNAB), Money Tracker, and more to easily set and manage spending limits.
Moreover, if you are a credit card user, limit yourself from using them extensively. Additionally, ensure that you pay off the credit card debts on time to avoid interest.
Once you set spending limits, split expenses into different categories, and track every expense, you will be able to identify your unnecessary expenses. So, continuously evaluate these factors on a weekly and daily basis to identify your spending and curb impulsive spending habits.
The 50/30/20 rule is the most beneficial budgeting method you need to know for effective money saving. This widely used method makes saving easier by dividing expenses into three categories: needs, wants, and savings.
Under this approach, an individual’s post-tax income is allocated as 50% for essential needs, 30% for personal wants, and 20% for savings.
No matter what the salary of an individual is, experts suggest that following this rule will help effectively save money for the future.
However, what are these needs, wants, and savings? Let us break this concept down into more detail.
This rule suggests keeping 50% of your salary for your needs. These needs include the unavoidable expenses in a person’s life. Some of these expenses include:
So, if your salary is 20,000, according to the 50/30/20 rule, you can use 10,000 for your needs. The rest 10,000 will go for other expenses and savings.
The next category is for the wants. While needs are the unavoidable expenses in a person’s life, wants are add-ons that improve the lifestyle of an individual. This can be engaging in your favourite hobby, going to a movie, and more.
These are activities or expenses that we need in life. However, they are not essential or unavoidable. According to the 50/30/20 rule, 30% of the salary or after-tax income can be devoted to these wants.
So, a person who has a monthly salary of 20,000 can use 30% of it, which means 6000 per month for the additional expenses. From this amount, a small amount can also be used for cheat spending, which can be used to treat yourself occasionally.
Some of the major wants can include:
The last 20% of your salary should be used for savings or investments. According to expert opinion, an individual should have at least 3 months or more of emergency savings. This will help them manage any unexpected financial needs like medical expenses, car or house maintenance, and more.
Moreover, these savings will also help achieve major goals like buying a house or a dream vehicle in the long run. So, individuals should invest in savings instruments like mutual funds, fixed deposits, digital gold, Unit-Linked Insurance Plans (ULIP), and others to improve savings.
So, if your monthly salary is 20,000, you should save 4000 a month, according to the 50/30/20 rule.
However, sticking to this rule might not always be possible. Considering the living expenses and other needs, especially in metropolitan cities, people might have to make slight adjustments in this rule, making it a 60/20/10 or something else, based on the expenses and emergencies.
Before getting into the details of the various investment plans, let us have a quick look at ways you can reduce spending and save your money.
We have already discussed the 50/30/20 rule and the necessity to save 20% of your salary. But how do you actually set aside this money, and where should you keep it? This part will address those questions and provide you with clear guidance. Here, we will discuss some prominent savings plans that you can adopt based on your available capital and risk tolerance capacity.
Mutual funds are a good savings option for investors. Here, money is pooled from different investors and invested in securities like equities and bonds.
Mutual funds are of different types, such as
Have you heard of SIP? SIP, or Systematic Investment Plan, is a method for investing in mutual funds at predetermined time intervals. According to this plan, an investor can choose a specific mutual fund scheme and invest in it automatically, preferably every month.
The major benefit of SIP is that investors can begin their investment with as little as Rs. 500 in most cases. This plan does not require huge amounts or lump sum investments. So rather than investing in mutual funds with a huge one-time investment, people can opt for small amounts at regular intervals, offering a higher return.
A savings plan available in different forms like perpetual SIP, flexible SIP, and top-up SIP, this program makes investors more disciplined, offers compounding benefits, and many more. However, although a relatively safe investment option, SIP is also subject to market risks, volatility, and underperformance of selected mutual funds. Therefore, ensure that you select funds that match your risk appetite.
Public Provident Fund, or PPF, is yet another investment plan that allows long-term investments with small investments at fixed intervals. This is one of the most common investment plans chosen by individuals who seek high yields in a better and safer way.
Once a PPF account is opened, investments will be made at regular intervals, and the interest will be compounded. This method is considered comparatively safe, as it is mandated by the government, offering guaranteed returns.
Additionally, investing in a PPF offers tax advantages under Section 80C, with a minimum contribution of Rs. 500 per financial year and an annual limit of Rs. 1.5 lakh. However, investors should look for potential risks like changes in government policies. Limited liquidity, lower returns compared to market-linked investments.
Fixed deposits (FDs) are commonly viewed as among the safest choices for investing. Here, people begin an FD account in banks or financial institutions, where they deposit a specific amount of money for a predetermined tenure.
Investors receive a fixed rate of interest on their invested principal. However, this interest will not change over the period, and hence the interest rates of different banks should be compared before finalising the platform for investing.
RDs, or recurring deposits, are similar investment options to those of FDs. They are also small investments made for a fixed time frame with monthly or predetermined investments. Once the determined time frame ends, the investors will get the invested money and its compound interest.
Recurring Deposits (RDs) typically offer higher interest rates than Fixed Deposits (FDs) and come with more flexible terms regarding tenure and investment limits. Moreover, RDs have more liquidity, and investors can withdraw their investments before completing the tenure with minimal to no penalties.
Unit Linked Insurance Plan (ULIP) is an investment plan that offers dual benefits. It serves as insurance and an investment by providing life coverage as well as the benefits of investing in the stock market or debt funds.
The payments made on ULIP are split into two parts, where one goes to life insurance and the other to the investment in mutual funds like equity, debt, or hybrid. This plan allows investors to switch between the investments, helping them gain the best ULIP plans.
Although ULIP is flexible and offers various benefits, it has a lock-in period of five years, during which the investors are not allowed to make any withdrawals. Moreover, this plan is also subject to market volatility, additional charges, and lower death benefits compared to term insurance.
Moreover, people with a 20,000 salary might at times face difficulties in maintaining ULIP due to its lock-in period and charges. So, they can also opt for term insurance and mutual fund SIPs over ULIP.
A Certificate of Deposit (CD) is an additional savings vehicle that individuals can utilise. It functions as a savings account where you can deposit money and earn interest on your funds.
Unlike standard savings accounts, CDs have specific restrictions, including limited flexibility. The investments made through this plan cannot be withdrawn before completing the tenure, as it will cause penalties. Moreover, this is widely used in foreign countries.
Another option to consider besides CDs is a high-yield savings account, a widely used Indian alternative. As the name implies, this scheme offers a greater interest return on your investment. However, these accounts demand a huge initial investment.
Offered by the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System is a good savings option for those with a budget of 20k salary. With this investment option, individuals can make systematic investments with their salary, focusing on their retirement life, which helps build a retirement corpus.
Any Indian between the ages of 18 and 70 can invest in NPS. linked with the market, this plan is a voluntary scheme that offers tax benefits. Moreover, NPS is flexible and can be managed from anywhere in India, even after changing jobs or locations.
Now, you might be clear that investments need not be huge to begin a savings plan. Even an Rs. 20,000 salary is good enough to start saving for the long run. However, in order to have monthly savings, it is important that you follow a disciplined budget plan by cutting off unnecessary expenses.
Along with following the 50/30/20 rule, the save-then-spend rule will also help individuals develop a good saving habit. However, if you are still in doubt about the investment plans and strategies you can adopt to improve your savings from your 20,000 salary, you can seek help from experts and financial managers.
Several identified platforms, like Finquo Versity, offer guidance and assistance in financial management and budget planning. The various courses, webinars, and discussions provided by these platforms will help you increase your financial literacy and, in turn, make the maximum savings from your salary, no matter how big or small it is.
So far, we have discussed a whole lot of things, from budgeting to saving and investing. We hope that this blog has helped you identify the important points that help you identify your expenses, cut short the unnecessary ones, and know what to look for while investing.
Moreover, we have already elaborated on the 50/30/20 rule and the various investment plans that anyone, whether they are a salaried individual, a youth, the Indian middle class, or a millennial, can follow. Furthermore, you can also consider diversifying your investments by investing in digital gold and other latest options.
So, although the question of how to save money with a 20,000 salary might loom in your mind as a challenging task, with the right planning, mindset, and disciplined approach, you can make your savings plan and long-term goals possible. Therefore, start small but engage in smart investments with the right tools, expert advice, and an attention to detail.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
