When I talk to many millennials about saving and investing…they tell me “I have no money to invest”. I decided to look at the reason why they are unable to invest. I also talk to corporate India and realize that salaries are not really low – in a poor country. Some of the wealth destruction habits that I have observed:

  1. Upgrading their phones very regularly: Every 18 months if you spend Rs. 30-50k for a phone. Ok make it 20-35k every 2 years…it is very unlikely that you will accumulate too much money. And we in the BFSI have spotted your penchant for picking expensive phones and are happy to lend you “emi” schemes. Most of them end up with an EMI constantly – paying a king’s ransom for being communicated. Have you noticed how exactly when you finish the EMI there is a launch of a new phone by the same manufacturer? That’s just to suck you dry!
  2. Buying an expensive new car: None of the millennials I know drive an entry level car. Most of them would be driving a car with a sticker price of Rs. 12L+taxes. And this for travelling maybe 4 km a day – on an average. Makes no sense especially if you can use a Uber or an Ola on a regular basis. Justification? Subra sir when my parents come, we go to the airport – and we need boot space. Amusing. Why not drive an Indica and hire an Ertiga on the day that your parents are coming? beats me. At a time when everybody is buying new cars, the second hand market is not really expensive….but buying a new car is an awesome wealth destruction by choice method!
  3. Not ensuring that dependents have medical insurance: One big unplanned expenditure is always the medical expenses of the dependents. So if your parents, sibling, children are dependent on you make sure that they have adequate medical insurance.
  4. Not buying adequate term insurance for the bread winner.
  5. Getting the bank to fund buying a pet, education, marriage, honeymoon, car, phone….effectively increasing the cost by anything from 30-200%!!
  6. Not planning ANYTHING in advance. Last minute booking of tickets, hotels, etc. even for their vacation is a sure-fire wealth destroyer.
  7. Last minute renewal of car insurance without much application of mind.
  8. Eating out  5 times a week! Planning your kitchen and storing right foods can save a lot of money, effort, and keep you healthy too!
  9. Making too many trips to the grocery – one ends up too many things that one does not need! Also many of the big shops keep an unreasonably big packet size. So what will a young couple do with say 250 gms of elaichi or some other item which they may use once in say 3 months! Both destroy wealth slowly and steadily.
  10. Not having a financial adviser. Not caring about personal finance – start early, invest for oldage….
  11. Paying too much for financial advise – I found a person with about Rs. 35L in mutual funds had paid Rs 45,000 to a financial planner (annual fee not a one time client) and was then investing through “Icicidirect.com”. Lol.
  12. Not skilling themselves for the coming job drought.

Most of this is good sensible behavior but……you know simple things are not easy to do!!


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  1. Sir,
    I will tell you the most funniest joke among all.
    These people also crib about annual salary hikes not beating inflation. They would have got about 8% hike on their 100.000 monthly take home.
    I get to laugh at these people.

  2. Credit cards are a dangerous tool sold as “prestige” items to a hapless population. The BFSI industry has been aggressively pushing all sorts of products at predatory rates. The unsuspecting folks are always a fine prey.

  3. This is a shocking one…

    11.Paying too much for financial advise – I found a person with about Rs. 35L in mutual funds had paid Rs 45,000 to a financial planner (annual fee not a one time client) and was then investing through “Icicidirect.com”. Lol

  4. Point 12 is really important, salary expenses are already high in Indian IT companies, margins are declining. Next level of outsourcing started few years back to South Asian, Latin American, East European countries where IT manpower is relatively cheap. All major Indian IT companies now have large development centers in these countries.

  5. Very true!
    EMIs are worst thing.
    Its not whether they’re “no-cost”, actually they come at a cost, cost of not investing the same and losing out on “compounding”

  6. I know few 12L per annum earners are going for Ultra segment cars such as Audi, BMW, VW and Merc. These car makers have got some innovative schemes such as ‘rear ballon’ to trap these avg salary and high prestige guys.

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