Exactly 10 years from now, a person will be sitting on their 45th birthday. They will have a car, a phone, and nice clothes. But they won't have enough in the bank to live for a year without a job. And that person might just be you. It sounds bitter, but it is the truth. Millions of people in India earn a salary every month and are broke by the 20th. Most of these people are hardworking and well-educated. Yet, by the time they reach 35, they all say the same thing. I wish I had started earlier. Now imagine if you knew in advance which seven things you should build by age 35 so that money chases you. Instead of you chasing money, and something even scarier. Almost every young person today is spending the most money on the sixth of these seven things. While in reality, it is their biggest mistake. I will tell you what that is later in the post. Let's get started.
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| Build These 7 Assets By The Age of 35 |
First, understand one thing. Being rich does not mean earning more. Being rich means building more assets. An asset is something that puts money into your pocket. And a liability is something that takes money out of your pocket. The problem is that we were never taught this in school. Take an example. Rohit and Amit are friends, both earning ₹ 60,000 a month. At 25, Rohit bought a big car on installments. He bought an expensive phone and ate out every weekend. From the same salary , Amit set aside ₹ 15,000 every month and built assets. 10 years later, they both turned 35. Rohit has an old car and finishing installments. Amit has a treasure that grows even while he sleeps. The difference wasn't in the income. The difference was in the assets. So let's learn about those seven assets.
Asset Number One: Emergency Fund
The very first asset is not an investment, but a safety shield. Money equal to at least 6 months of expenses in a separate account. Imagine if you suddenly lose your job or someone at home gets sick. Those who don't have this fund take out loans, and the interest pulls them back for years. A single blow can wipe out 10 years of hard work. How to build it? Calculate your monthly expenses. Suppose it is 30,000, then the goal is 1,80,000. Keep it in a savings account or liquid fund from where money can be withdrawn immediately when needed. As soon as your salary arrives every month , put it into this first.
Asset Number Two: Health and Life Insurance
Now you might be thinking, is insurance even an asset? Yes, because it protects all your other assets. Medical costs in India are rising rapidly every year. A single hospital bill can swallow up all your savings. So, get adequate health insurance before the age of 30, and if your family depends on you, get term insurance, which provides a large safety net for a low premium. Remember one thing: Do not consider insurance as an investment. Insurance is protection, and investment is a different thing.
Also Read, What is the 50-30-20 Rules in Finance. Easy Financial Planning for Beginners.
Asset Number Three: Equity or SIP
Now comes the asset that creates wealth over the long term. Regular investment in index funds and mutual funds, i.e., SIPs. Understand the power of compound interest. If you invest ₹ 10,000 every month starting at age 25 at an average of 12% annually, a significant amount accumulates by 35. But the real magic happens after that because money starts making money. A person who starts 5 years late ends up lagging by lakhs of rupees. Time is the most valuable resource, and no one gets it back. Keep in mind that the market will have its ups and downs. Withdrawing money out of fear is the biggest mistake. Only those who have patience win. And before any investment , build your own understanding or consult a certified advisor. This information is educational. It is not investment advice.
Asset Number Four: Skills
Your greatest asset. Now I will say something that no one else says. Your greatest asset is your mind and your skills. Jobs can be lost; the market can crash. But the skills you possess within you cannot be taken away by anyone. A person who learns a high-value skill—whether it is sales, writing, technology, design, or video editing—can increase their income many times over. The time between 25 and 35 is the golden era for learning. Just 1 hour a day, that's 365 hours a year. In 2 years, you can get far ahead of ordinary people in any field. The question is, will you spend your free time watching reels or learning something whose value increases every year?
Asset Number Five: A Second Source of Income
Relying on just one salary is like standing on one leg. A slight push and you will fall. Therefore, by 35, build at least one additional source of income. This could be freelancing. Online teaching, a small business, digital products, or rental income. In the beginning, your income will be small. Maybe 5000, but it is not the amount that matters; it is the habit. Those who learn to earn for themselves are never fully dependent on anyone else.
Asset Number Six: Your Credit Score and Network
And now that sixth asset I mentioned in the beginning. Very few people consider this an asset. Your credit score, your credibility, and your network. If your credit score is good, home loans are cheaper. And you can save lakhs in interest. And that mistake I mentioned: spending money on appearances. Meaning expensive phones, branded clothes, and buying on installment so people think you are rich. The truth is, those who spend to look rich never actually become rich. Showing off is a liability , while real wealth grows silently. Also, connect with the right people. The five people you spend the most time with, you gradually become just like them. Build a circle where you get the chance to learn.
Also Read, 8 Low Budget Business Ideas in India. Business Ideas Under Rs 1000 in India.
Asset Number Seven: Your Health and Time
The last asset is the most precious. Your body and your mind. Many people between 30 and 35 get so caught up in earning that they forget sleep, exercise, and family . Then at age 40, that same earned money goes to doctors. What is the use of wealth if you don't have a body left to enjoy it? 30 minutes of daily exercise, full sleep, and a balanced diet are all investments in your future . And take care of your mind. Because decisions made under stress are often wrong.
So, let's recap. One: Emergency Fund, Two: Insurance, Three: Stock Market Investment, Four: Skills, Five: Second Income Source, Six: Credit and Network, and Seven: Health. If you are 25 now, you have 10 years. If you are 30, then 5 years, and if you have crossed 35, don't worry, because the best time to start was 10 years ago. And the second best time is today. Now, the question I promised in the beginning. Close your eyes and ask yourself. If my salary stops 5 years from now, How many months will I be able to survive? If the answer scares you, understand that today is the day to start. Just do one thing today: choose the weakest asset among these seven, take the first step toward it today.
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