The answer lies in “not needing the money NOW”. Have you noticed how you tend to worry less about money when you have more than enough of it? The feeling when you receive your salary versus when you are nearing month end is quite different.

108 months, Rs 20,000 to save a month to begin with. Can you reach 50 Lakhs before 40? Here’s a 5-step approach

We do end up getting our collective acts together later on when concerns for our child’s future or a drying up job market force us to think seriously about investing. But is there a cost to investing later on in life, rather than earlier?

The limit is only the reality of our savings and income. The greater the income we have the more or bigger financial goals we can plan and invest for. If that is the case, then can increasing our income be a financial goal?

The life goal, such as the one above, needs to be converted into a “financial goal” for it to see daylight. This means talking about sobering facts about money and how to save enough of it to buy the flight ticket, book an Airbnb and still leave enough to do some kilt shopping and, you know, eat and drink, and make merry.

Once you know your financial goals, and the asset classes you need for them, the next step in achieving these goals is selecting the right instrument. This approach will help you set rational return expectations, and more importantly won’t lead to disappointment.

Increasing your SIP in line with your raise can work wonders for your wealth. Find out how.

For goals that are going to take less than five years, fixed income makes most sense. These can include debt mutual funds, fixed deposits, Government and private bonds, NCDs, various post office schemes, and a few others.