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Post By Shraddha Gala

Smart Steps to a Wealthier You

National Youth Day 2019 Special

Youth is the backbone of a nation. In a country like India, where 65% of the population is below 35, the time is ripe to go forth boldly and build a strong base for the growth and development of the country. India’s demographic situation is so favorable right now that the progress and stability that the current generation can bring is capable of launching the country into an economic superpower and into decades of abundance.

Along with limitless progress, though, it is also important for the youth of the country to know that, while the future belongs to them, a few smart steps taken now can benefit them a whole lot in the future.

While investments and insurance might seem “boring” or “uncool” and something left for after you enter your 40s, it is wise to start on them right away. Let’s quickly see the benefits of starting young and allowing the economic infrastructure to work for you:

Power of Compounding: The earlier you invest, the more money you make. The power of compounding has been called the eighth wonder of the world. Let’s see an illustration:
- Ramesh (45) invests Rs 5,000 per month in a ULIP for 15 years. At 10% returns, he makes close to Rs 21 lakhs at the end of 15 years.
- Suresh (35) invests Rs 5,000 per month in a ULIP for 25 years. At 10% returns, he makes close to Rs 52 lakhs at the end of 25 years.
- Mahesh (25) invests Rs 5,000 per month in a ULIP for 35 years. At 10% returns, he makes close to Rs 1.7 crores at the end of 35 years.

Moral of the Story: Be wise and invest early!
Also Read: 5 Reasons Why ULIPs Are Superior to Mutual Funds

Buy Insurance Early in Life: Urban Indians understand the crucial role insurance plays in their lives. Eventually, when individuals enter their 40s, they want the benefits and protection insurance provides, but they either cannot afford it anymore or they have so many liabilities that they cannot spare any more expenses.
However, when an individual is young, they get the lowest rates on insurance policies because of their good health. Moreover, as they age and their salary increases, the cost of insurance premiums does not rise but remains the same. Here is the list of insurance must-haves whose premiums are comparatively very low for those below 30: