How Much Money Should You Have Saved by 35 in India?

Every individual's financial journey is unique, and the amount saved by 35 can vary greatly depending on personal responsibilities, income, and spending habits. There is no one-size-fits-all answer to how much money you should save by 35. However, understanding the factors that can influence your savings goals can help you make informed decisions.

Understanding Financial Commitments

Personal experiences can shed light on the diverse financial journeys one might undertake. For instance, my father, who joined a Group C service government job at the age of 25 with a modest salary of around Rs. 950, faced numerous financial responsibilities. He was the sole breadwinner for an extended family of about 20 individuals, including his parents and siblings and their children.

Extended Family Responsibilities

My father's story reflects the challenge of balancing personal financial goals with the need to support an extended family. At the age of 35, he had zero savings despite his efforts to fulfill his duties. He sponsored the weddings of his three sisters, paid for the education of his four nephews, and covered the medical expenses of his parents during times of illness. These significant contributions, combined with the high expenses towards his extended family, prevented him from saving until he reached 36 years old.

Choosing Secure Investments

My father eventually started saving and investing in secure assets. He avoided investing in land due to the large amounts required and hesitated to invest in the stock market because of liquidity issues and the fear of potential financial losses. As a result, he opted for relatively safe investments such as Guaranteed Provident Fund (GPF), Fixed Deposits (FD), and a savings account. Today, at the age of 54, he has amassed around 70 lakh in GPF, 25 lakh as FD, and 2 lakh in his savings account through disciplined saving and compounding.

Family Legacy

Despite the challenges, my father provided a secure financial foundation for his children. All of his children studied in government schools and colleges, and two of them are now government employees. He also gifted approximately 200 grams of gold to his mother, understanding the importance of saving for her personal expenses. My mother, in turn, supported both my father and her children with her own savings and occasional contributions.

Lessons for Today’s Savers

My father’s journey illustrates that it is perfectly fine to have zero savings at a particular age, as long as you’re fulfilling your responsibilities and making progress. It’s crucial to prioritize personal savings as soon as you can, even if it's a small amount. The power of compounding can significantly increase your wealth over time. Additionally, seeking advice from financial experts can help you navigate the complexities of financial planning in India.

Key Points to Remember:

Personal responsibilities: Understand and prioritize your financial obligations. Secure investments: Choose reliable investment options that suit your risk tolerance. Compounding and savings discipline: Start saving early and consistently to build wealth over time.

In conclusion, the amount saved by 35 in India can vary depending on your unique circumstances. By learning from the experiences of others and making informed financial decisions, you can achieve your own financial goals and secure your future.