Edelweiss Mutual Funds Chief Radhika Gupta has shared her recommended investment strategy dubbed “savings deducted at source” for GenZ, noting that life is “not a choice between YOLO and savings”. YOLO is the acronym of the internet slang “you only live once”.
In a post on social media platform X (formerly Twitter), Radhika Gupta answers if the younger generations must choose between how much to invest for the future and how much to enjoy the present, and shared some actionable tips.
‘YOLO or save?’ Radhika Gupta answers…
“To YOLO or to save? I meet so many young people who tell me they don’t know where to start with investing. How much … and then how in first place?” she stated, adding that the “tussle” between choosing to attend the next Coldplay concert and saving money “is real”.
“Every generation had it, even before Instagram showed up… my mother still tells me how my father blew up a lot of his salary on buying records 🙂 Reality is life is not a choice between YOLO and savings… it’s a balance,” she noted.
Radhika Gupta’s advice: What is 10-30-50 rule?
Referring to her new book Mango Millionaire, co-authored with Niranjan Avasthi, Sr. Vice President at Edelweiss MF, Radhika Gupta shared a “simple 10-30-50 rule to help”.
Radhika Gupta’s new funda: Savings deducted at source!
Radhika Gupta also had a hack for how you can ensure you make the savings possible, noting that, “Young folks often tell me even 10 per cent feels hard and then I ask them, well how do you pay tax?”
“Oh… tax is deducted at source! Why not do the same with your savings? That’s SDS — Savings Deducted at Source. Automate your SIPs, RDs or FDs before you even see the money,” she suggested
“You can do both — buy the handbag and save money for the start up, and that Gen Z, is real flex,” she added.
Radhika Gupta on what you should spend money on…
Earlier on July 24, Radhika Gupta, who is a well-known proponent of systematic investment plans i.e. SIPs, publicly advocated for enjoying “the fruits of your hardwork” and finding a good middle ground between spending and saving or investing.
“At the end of the day, life is not a race of who has the highest NAV of most rupees, but who has lived most joyfully. The middle path exists, and it is good one,” she noted.
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