5 ways Jaipur youths are managing personal finance during COVID-19 pandemic
Jaipur: Living like there is no tomorrow was the defining spirit of the pre-covid world amongst Jaipur’s youths. Then the pandemic came knocking in March last year, hollowing out many jobs that hired fresh blood. Many were left with little savings and others had no investment to count on for hard times.
The PinkCity Post spoke to several youths and investment advisors and tried to find how they are managing their personal finances during these challenging times. Here are a few tips to remember before another catastrophe catches you off guard.
Keep a side hustle
It is especially important for those between the ages of 25 and 34 to start a small scale venture which can give you a passive income. The global market heading for the internet driven fourth industrial revolution allows you to sell your skills to any part of the world. Several of Jaipur’s engineers, civil services aspirants, and even fitness enthusiasts are taking online classes, teaching everything from basic algebra to fitness diets to advanced physics using a decent webcam and a white board. Others are using their core skills like coding and graphic designing to earn a part time income. The income drawn from the side hustle can keep afloat during trying times.
Jogeshwar Rao, who worked as a gym instructor with a leading chain, said that after losing his job last year, he decided to fly solo. “I designed a fitness plan for quick home workouts. I dedicate at least five hours every day for my internet business which has given me a good side income. I also got a job recently but kept my side hustle going,” he said.
Save at least 30% of your income
Save at least 30% of your salary by cutting down unnecessary splurges and indulges. The 30-percent-saving rule is not a savings benchmark for personal finance, but it is a good starting point for training yourself to spend less than what you earn. According to Akshay Mittal, a financial advisor based in Jaipur, one should plan for at least 30 to 40 percent of monthly savings but starting with 30 % as a rule of thumb helps you realise how difficult savings are then they appear to be.
Talk to a financial advisor or check online to find a good retirement plan, mutual funds or even good stocks. Nehal Jain, who works as a BPO employee said that his job is like always walking on eggshells , you never know when you are laid off. “After I realised the fragility of my career, I began investing by contributing to a retirement fund and some stocks. I don’t fear layoffs now because I have some investment that can keep my stay afloat for at least a year, “he said.
Don’t take a loan to buy depreciating assets like a fancy new car or bike unless you absolutely need to. Several of the city’s financial advisors told PinkCity post that many youths in Jaipur take a bike or a car loan as soon as they get a job. “Many of them don’t need these new vehicles, but they are ready to sacrifice a major portion of their monthly salaries on needless EMIs,” Said Ajeet Sharma, a personal finance expert.
Nothing is more important than to understand the waters you are about to wade into. Finance is not a subject that is taught in schools unless you opt in high school. Thankfully, the internet has many free courses and youtube videos to help you train in finances. You can also buy books that tell you how you can build your investment portfolio, whether to buy mutual funds or invest in gold bonds etc.
These key skills can help you direct towards a path of financial independence and living without a constant worry of being left in the lurch like many did during the pandemic.