SIP investment: According to financial wisdom shared at the Rising Bharat Summit 2025, financial discipline is a life skill much needed by the youth of today. Many youngsters want instant gratification; they become impulsive when spending money and unable to comprehend the concept of risk. This culture has led young minds to taste the bitter fruit of debt.
But here is the good news: Simply investing in a good S.I.P. of ₹10,000 a month can create wealth as high as ₹3.5 crore. The key? Starting early and maintaining the discipline.
The Problem: A Generation Unprepared for Financial Responsibility
Instant Gratification vs. Long-Term Wealth
Dhirendra Kumar, founder of Value Research, highlighted a critical shift in mindset:
“Earlier, people waited years for a scooter or a phone connection. Today, everything is available instantly. This has led to reckless spending and a dangerous belief that increasing expenses equal progress.”
He also pointed out how FOMO (Fear of Missing Out) fuels unnecessary spending, pushing many into financial stress.
Schools Teach Algebra, But Not Affordability
Kumar emphasized:
“Financial discipline is a life skill, yet schools teach algebra instead of practical money management. Young adults don’t learn whether they can truly afford something—they just spend.”
The Solution: Financial Education Starts at Home
Parents Play the Biggest Role
Rajul Kothari, partner at Capital League, shared his approach:
“We grew up in scarcity, but our children live in comfort. That’s why parents must teach financial responsibility early.”
He opened bank accounts for his kids at a young age, teaching them how to save, invest, and track their portfolio’s growth. His advice?
“Make budgeting fun—don’t let it feel like a chore.”
The Dangerous Trend: Young Adults Drowning in Debt
Prableen Bajpai, founder of FinFix Research & Analytics, warned about a disturbing trend:
“Young people are financing weddings, vacations, and cars with personal loans. One individual I met was in deep debt just from his wedding expenses.”
Her advice?
“Always budget for big expenses. Unplanned spending can ruin your financial future.”
How a ₹10,000 SIP Can Turn Into ₹3.5 Crore
The Power of Starting Early
Prableen Bajpai explained the magic of long-term SIP investing:
- If you start a ₹10,000 monthly SIP at age 25 and continue until 55, you could accumulate ₹3.5 crore.
- With a 10% annual step-up, the corpus can reach ₹8.7 crore.
But what if you delay?
- Starting at 45 with the same SIP for 10 years yields only ₹23 lakh.
- Even with a 50% step-up, it reaches just ₹1.8 crore.
- To match the ₹3.5 crore target, you’d need to invest ₹1.6 lakh per month—proving that time is your biggest wealth-building ally.