Why Starting a SIP in Your 20s Changes Everything

Money invested at 25 has twice as long to grow as money invested at 42. Your 20s are when you have the least money but the most time, and time usually counts for more.

How much difference does ten years make?

That assumes ₹5,000 a month and a 12% return, which is not guaranteed. The pattern matters more than the exact numbers: the person who starts ten years earlier invests only ₹6 lakh more but could end up with more than three times as much. See the SIP Delay Cost Calculator for your own numbers.

How do I start on my first salary?

1. Save one or two months of expenses first, then keep building your emergency fund.
2. Get health cover if your employer’s is thin, and term cover if anyone depends on you.
3. Start a SIP at any amount you will not notice, even ₹1,000 to ₹2,000.
4. Raise it by 10% or more each year, ideally when you get a raise.

What should I avoid in my 20s?

• Credit card debt, which can undo years of saving.
• Buying insurance as an investment. Keep the two separate.
• Trading on tips. Learn with small amounts, if at all.
• Stopping your SIP in a market fall. At your age, a fall means lower prices for decades of future buying.

Is it too late if I am past 30?

No. Starting at 35 is much better than starting at 45. The best response to a late start is simply to start now and step up harder.