5 Mental Shifts for Millennials in Personal Finance

One Sunday evening I was having a general conversation with my dad and uncle on “Who taught you money management techniques. The three of us had a wonderful conversation about this topic and I realized that the more your money works for you, the less you have to work for money. It seems to be hard to get proper and authentic financial advice when you earn or handle the money for yourself. When you turn out in your 20s, the responsibility of money management switches from your parents to you. People find it hard to manage their income, savings, and expenses.

Life is great when finances are in place, just as you have to be mindful and disciplined in money habits, you can achieve financial freedom.

I would like to share 5 mental shifts that I’m practicing and that might help you a lot!!!


Power of Compounding


“Compound interest is the eighth wonder of the world. He who understands it earns it… he who doesn’t… pays it.”
- Albert Einstein

We may all know about this famous quote by the greatest scientist. My dad explained to me about investing at 16 vs 25, as investing 500 per month from age 16 at 12% annually for 14 years would make ₹2,443.56 than investing 1000 per month from the age of 25 at the same interest rate for 5 years would make ₹1,762.34.

Thus the power of compounding investing a slight amount for a longer time would make more money than investing a sizable amount for a shorter amount of time. This made a serious impact on me and I soon started investing when I turned 16, made two Fixed Deposits and Bonds.

“Successful investing takes time, discipline and patience… some things just take time”.
-Warren Buffett

That’s because even though sitting idle and letting the power of compounding work. Does it seem magic to you or does it feel simple? Actually friends it is a lot more difficult. All you need to have is patience, tolerance, and a powerful belief that it works.



“An investment in knowledge pays the best interest.”
- Benjamin Franklin

No doubt of the fact that Time is Money and I can also say sometimes time is more important than money.
Money is an indispensable part of anyone’s life, we can earn it again but as we know- time flies and waits for none. I’d won two Hackathon Competitions at IIT Bombay and was awarded a cash prize. I gave all my efforts for it and invested measure part of my time.

Why? Well, this is a must you might be thinking!

It’s because I wanted the best results of my investment and I did get that. During this period, I got to know about a practical mini-MBA program named Enterprise Fellowship and I paid the fees required for the program with the help of cash prize I achieved.


It’s well said Invest time in yourself, you will get the best out of it.


So guys, If you are in your 20s, Cheers! You have an important asset which people out there doesn’t have and I would say that’s your biggest achievement –TIME



Don’t save what is left after spending….. But spend what is left after saving.
-Warren Buffett

I started earning since 16, whenever I got paid for the projects I did, the usual question raised was what should I do with this amount?

During that period I read Think and Grow Rich in which I learned a concept of Pay yourself first, I practiced the concept of “Emergency Fund”, it is equivalent to 3-month income or 6-month expense amount as gives you the much needed financial security amongst unexpected expenses. Saving for emergencies is another important aspect of money management that one can’t afford to skip. As we are in the middle of an economic crisis because of pandemic situations all over the world. Many people broke down because of a lack of savings. So be careful and start saving.

Manage Debt


“When you get in debt you become a slave.”
-Andrew Jackson

There isn’t any hard and fast rule just remember,
Don’t borrow unless you can afford it. I have two debit cards and my dad’s addon credit card. I eventually get attracted to the offers provided by the credit card provider than on debit cards. Later, I realized it was a trap of debt and I should get it off.

So, Let’s learn a lesson!

I discussed this issue with my dad then he explained that offers on credit cards are provided because they want you to take loan credit amount from them as the provider gets benefited but debit cards allow us to spend the amount we have in our bank account. He advised me that Credit Cards are only to use in situations of emergency, & not for casual purchases.



A budget is telling your money where to go instead of where it went.
-Dave Ramsey

When I get pocket money, I divide it into 20/30/50. Now you must be thinking, What is 20/30/50? It is 20/30/50 rule of budgeting as

20% of the amount reserved for achieving financial goals, this includes saving and investments.

30% of the amount reserved for a personal budget, this is money towards nonessentials but enhances your lifestyle. It majorly includes entertainment, travel, pets, gym memberships, dining out, hobbies, or any other lifestyle choices and non-necessities.

50% of the amount reserved for my living expenses and essential needs, this includes rent, utilities, groceries, clothing, and transportation. Any costs that contribute to your daily needs will go under this category.

To follow this rule smartly, I used a Spendee app to remind me of recurring payments and utility bills on time. So, to avoid late payment charges and keeping you alert when you are not managing it wisely.

You need to follow this for a financially stable condition. I do follow and trust me this helps! And remember discipline is a secret in making a great empire of yours.


  • Aditya Jhunjhunwala
    Posted at 12:21h, 24 May Reply

    Hey Dnyanesh, this is a very important times, special in a world hit by corona virus. Our society has been reducing our rate of saving decade after decade. You article is clear and precision and motivates us to really understand the importance of saving. Love how you have incroporated your fathers advice step by step into this blog. Enjoyed reading it thoroughly.

  • Rahul Devkar
    Posted at 12:39h, 06 June Reply

    Hey Dnyanesh,I always confused about financial things like budgeting,investments and end of the month I don’t know where I am but after reading this amazing article i got so much value from it and now I’m going install spendee app.Thanks for sharing

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