Many young Indians today are caught in a constant dilemma between enjoying the present and securing their financial future. Questions like whether to spend on a Coldplay concert or to divert that money into an investment reflect the struggle between instant gratification and long-term security. Edelweiss Mutual Fund CEO Radhika Gupta believes the answer lies not in extremes but in balance, and she has shared her perspective on how to approach this challenge.
Gupta highlighted on X that a large number of young people feel lost when it comes to starting their investment journey. They wonder how much to save and how to even begin. She reminded them that this internal conflict is not unique to the digital age. Every generation has faced it, even before the influence of Instagram and social media. Recalling a personal example, she mentioned how her father often spent a significant part of his salary on buying records, a habit her mother still talks about.
To provide a practical framework, Gupta introduced the 10-30-50 principle. According to her, in one’s 20s, saving even a small percentage, such as 10% or even 1%, is important because building the habit matters more than the amount. In the 30s, savings should increase to 30% as life goals and responsibilities grow. By the 40s, she suggests saving 50%, since this stage often marks the peak of one’s income and earning potential.
She acknowledged, however, that many young people find it difficult to save even 10%. To them, she drew a comparison with taxes, pointing out how tax is deducted at the source before reaching one’s account. Extending this idea, she suggested adopting a system she calls SDS — Savings Deducted at Source. The concept encourages automating savings through methods like SIPs, recurring deposits, or fixed deposits, ensuring that money is invested before it is spent.
Gupta believes this approach creates the right balance, allowing people to enjoy their present without compromising their future. By saving systematically while still indulging in personal desires, one can strike a healthy financial balance. As she puts it, the real flex for Gen Z lies in being able to buy the handbag while also setting aside money for bigger goals like starting a business.
