Enjoy Today, Pay Tomorrow? The Costly Mistake Every New Earner Makes

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Last month, I happened to attend an event and met a young man there. I felt that nature had blessed him with plenty of talents: measured conversation, good manners, a good job, and family stature; in short, everything. It was a lot of fun talking to him, and then, in the course of conversation, the discussion turned to finances.

I asked, "My dear young man! You have a good job. Do you save anything? Have you made any investments? Or is there any plan of sorts?"

Respected readers! You will be surprised that upon hearing this question of mine, that young man became somewhat disheartened and, contrary to all my expectations, gave a blunt reply, saying:

"Uncle ji! What is the matter? My practical life has just begun. Let me enjoy life for a couple of moments. This is the time. As for this investment business, that is the job of old people. And I am not refusing. God willing, when we grow old, we will do investing and saving too!"

He gave his answer by putting a lot of emphasis on the last two words, 'investment' and 'saving'.

Respected readers! Let me tell you that I saw a specific spark in his eyes; the exact same spark that is present in the eyes of every young person who says 'not right now'. I also merely smiled and said: "Alright son! As you wish!"

But a slight pang arose in my heart. I wish this capable and promising son of my country could know that the opportunity he laughingly rejected today will never return in his lifetime.

Honored readers! The real matter is that this is not the story of just an isolated, carefree boy or young person. This is the tragedy of almost every novice of ours. We consider the initial years of our post-employment life as a decade for spending: a new phone, new clothes, travel, restaurants, and then, even greater than these, a new car, a new house. Our entire focus remains on our current state and its pleasures. The philosophy of our youth is to enjoy first, and we will save money later.

There is a retired banker. One day, he showed some numbers on his calculator and said:

"Look, if a boy starts saving a mere 5,000 rupees monthly from the age of 25, puts it in an average profit-yielding scheme, and stops at the age of 40, how many rupees will he have by the age of 60?"

I estimated: "15 lakh or 18 lakh rupees!"

He turned the calculator around and placed it in front of me: "31 lakh rupees. Around 10 lakh became his pure savings, and the rest is his profit in such a way that if they give even 10% monthly, the total amount by the age of 40 will exceed 20 lakh, and at the age of 60, it will be 1 crore 39 lakh rupees. Furthermore, if they give 15% monthly, the total amount by the age of 40 will exceed 33 lakh, and at the age of 60, it will be 5 crore 47 lakh rupees."

And these are not groundless talks; rather, a person from the field is making them. And he is telling you ahead of time that there are companies that enter into long-term contracts with you and then keep giving you profits, for example, life insurance, mutual funds, or Islamic Takaful, etc.

Then he said, and if that boy delayed by five years, started from the age of 30, and kept putting the same monthly 5,000 rupees until 40, what would happen? The result was 22 lakh rupees! This means a delay of five years meant a loss of 19 lakh rupees.

This was not magic; this was the miracle of compounding, and the most powerful magician of this miracle is time, and that time comes into hand solely during the first decade of employment, meaning the initial 10 to 12 years.

Now look at the country's situation. What is our economy? The monster of inflation is burning down your purchasing power every year. An abundance of taxes everywhere is multiplying the prices of goods several times over. The reign of government jobs is coming to an end. In the private sector, there is work today and none tomorrow. In such a scenario, if you do not possess an active wealth generated by your hard work that works for you, then your fate will be just like those millions of people who live purely at the mercy of a salary and, despite dreaming day and night of financial freedom, never practically achieve it!

Look at the tragedy of our education: we teach children how to become doctors, engineers, etc., but we do not teach them even a single chapter on financial literacy! They do not know what the stock market is, or what a mutual fund is called. The result? Even an educated young person cannot budget their first salary. They cannot set aside a portion of their income for investment, nor does anyone teach them these things. And then, if some lost traveler at some point in life starts talking about such matters, these young people twist their faces, wondering who this is and what kind of things he has sat down to talk about.

So today, through this piece of writing, I am addressing every young person who is spending the first decade of their employment. My brothers! Remember well that your greatest wealth is not your youth; your greatest wealth is the time hidden within this youth. You possess that time which a 40-year-old person cannot buy back even by paying millions or billions of rupees.

Think about it, the 1,000-rupee pizza you are eating daily today can become three to four lakh rupees after thirty years. The new mobile phone worth thirty to thirty-five thousand that you are buying today, that amount can become 10 to 15 lakh rupees after ten years. This is not a matter of wasting money; this is a matter of priorities.

Look, my dear ones! My words absolutely do not mean that you should stop enjoying life. Not at all! The meaning is to enjoy with responsibility. Separate a small portion of your income, perhaps 10% each month, even if it is just 1,000 rupees. Put it into some good mutual fund, then forget about it.

Imagine when you turn thirty years old, you will have an amount that can help with your wedding; when you turn 40, you will have an education fund for your children; and when you turn fifty, you will be free from the pressure of your career because your investment will be giving you a monthly income.

This is financial freedom, and its path passes right through the age of 20! Start! From today! From right now!

What you are blowing on a cup of coffee today, that same money can become the support of your old age. The decision is yours: today's tiny comfort, gratification, and pleasure of the tongue, or the peaceful prosperity of an entire lifetime?