Help me become an 'adult'. Need your advice/guidance

[ethan123a]

Hey guys!

I will be starting my first job next week.

So far I have never had to manage money, pay bills etc. Parents took care of everything. Besides, I’ve been abroad for a while so I’m not sure how things work in India. I’ve lived alone in Europe before - did my laundry, cooked, cleaned etc. - but never really had to 'pay bills' because it was all inclusive. So I do have some idea but I’m not sure if that carries over to how the system works in India - so I'll assume a blank slate.

I now want to educate myself so I can be fiscally efficient (manage my direct tax bill the best I can) and be financially responsible i.e. how to budget for the present and save/plan/invest for the future.

Basically I want to learn how to be an independent adult in India. I will have my own income. I will be living with flatmates I just met.

I could ask mum and dad (and I will) but I don’t think they’ve thought about this in a structured manner. I need advice or names of books/videos etc. that can show me the big picture and then specific/detailed advice/guidance about the sub-components.

From the top of my mind, I would like advice/guidance on:

• How do I manage my money so I pay my fair share of tax - but not any more. Do I have to get a CA? Can I do this on my own? Do I also have to get a lawyer?
• How do I budget for the present so I can have a decent lifestyle now?
• How to save/plan for the future? Pension schemes etc. - are there mulptile types? Do I have a choice to make - in terms of which scheme, how much to contribute, when to contribute etc. How much is in my control and how much (if anything?) is automated by my employer?
• What are my investment options - what can/should I invest in? Stocks, mutual funds (I know the name, but I have no idea what these are!), save for retirement, contribute to pension - I know I have to do these things so I know the names - but I don’t understand them.
• I have a European passport (by birth) and Overseas Citizenship of India (India's "dual citizenship" - not really, but sort of) - so that might open up some international investment options for me?
• How do I decide between options - how do I evaluate and choose between options? What criteria/process do you use?

I don’t expect anyone to give me a detailed guide about everything. I know I have to do the learning myself.

• Are there any guides, books, blogs, videos etc. where I can learn about these?
• I would also appreciate if you could give me some structure - where/how to start. For example:

You need to learn about X, Y and Z.

X is the most important/fundamental/necessity - so learn about X first.

For X you need to do 1, 2 and 3.

For 1, read a, b and c. For 2, read e, f and g…

After X, Y is important. For Y you need to do….. and so on for Y and Z.

Thank you for your help

 

[sammie2019]

@ethan123a Check wiki and eli5. There is a reading suggestions in there too.

 

[nizz]

@ethan123a You're asking the right qeustions.

The wiki has some great information.

Freefincal.com is by a professor who blogs about his DIY approach to investing. Read it. He has all the answers to your questions.

Investing in mutual funds in India is sufficient for all needs -you can use just old and existing mutual funds to use for bonds, pension, short term needs etc. Stocks if you have a lot of time on your hands.

Being an NRI gives you great tax benefits. Google NRI investing in India. One good one is NRE fixed deposits.

Moneylife foundation has some interesting videos on youtube about investing in India.

Most important of all, don't hesitate to ask any sort of questions.