Increase your income like this.

Many people believe that starting SIP or FD as soon as you get a job is the best financial decision. But the truth is that this strategy is not applicable to everyone, especially those youth who start their career with a starting salary of Rs 2025 thousand. In low income, savings are small and the effect of compounding is very slow. In such a situation, a different path can change your life and if you spend money on these things in the first 5 years, you can earn more in future.

What to do in the first 5 years?

Make these 5 years your 'skill building and growth phase'. During this time, it proves beneficial to invest money in other things instead of saving schemes like learn new skills, do professional courses, improve communication and presentation skills, learn digital tools, AI and data analysis, network with people in the industry and understand the world by traveling. These things increase your market value and increasing skills helps in getting a good salary jump quickly.

Why does early investment become ineffective in low salary?

When the starting salary of the job is low, most of the money is spent on rent, food and essential expenses. In such a situation, hardly Rs 1,000 to Rs 5,000 is saved every month. This amount is a good foundation for investment, but is too little to build a corpus worth crores. Compounding is very slow on small capital and the amount remains small even after years.

Therefore the advice 'invest quickly' is not suitable for everyone. Especially when the same money is invested in improving one's skills, the income can increase manifold and the scope of investment also increases in the future.

What is achieved by saving Rs 5,000 in 5 years?

If you invest Rs 5,000 in SIP every month and assume 10% return, then the total amount in 5 years comes to around Rs 4.6 lakh. Meaning interest profit of one lakh in five years. This is a slow growth, which is not enough to change lives.