The Chai That Changed My Wallet: A 20-Year-Old’s First Step into Personal Finance
Because Building Wealth Isn’t Loud — It’s Built ₹500 at a Time.
It didn’t begin with chaos.
There was no urgent phone call. No credit card meltdown. No accident that forced a financial awakening.
Just a simple Sunday. Warm sun filtering through my window. CFA Level 1 books sprawled across the bed. And in the middle of it all, a perfectly brewed cup of chai. Strong, sweet, grounding.
Next to it? My phone screen shows a ₹15,000 balance from my internship.
That money should have made me feel proud.
But instead, it felt... idle.
And somewhere between sips, one thought bubbled up:
“What if I did more with this?”
That question didn’t just change how I saw money. It changed my relationship with it. That day marked the beginning of my personal finance journey.
The Myth of Financial Literacy as a Finance Student
When I first entered the world of finance, I thought I was ahead of the curve.
I could read balance sheets, calculate ROCE in seconds, and explain the difference between EBITDA and EBITA like I was teaching a masterclass. But when it came to my own money, I was completely lost.
I Googled: how to start investing in India.
The results?
SIP, PPF, ELSS, FD, NPS, SGB, ULIP, REITs, Index Funds, Direct Mutual Funds.
I was overwhelmed. It was like walking into a buffet with 200 dishes but no one to guide me on what to eat, what to avoid, and what suits my appetite.
Finance in books is neat and clean. Finance in life is messy, emotional, and deeply personal.
The First Compass: "Why Am I Doing This?"
Most people talk about where to invest.
Very few talk about why.
This was the game-changer for me. Instead of blindly picking a mutual fund or opening a PPF account because someone said so, I decided to sit down and ask myself 4 brutally honest questions:
1. What do I truly want?
Not what Instagram says. Not what society expects. But me.
A home that reflects my personality. A car that smells like freedom. A solo trip to Japan that lets me meet myself. And eventually, a life where I’m never financially dependent on anyone.
2. When do I want it?
Goals without timelines are just wishes.
I didn’t want to say, “I want to retire rich” or “I want to travel someday.”
So I added dates.
Japan Trip? Age 24.
First Car? Age 26.
Home Down Payment? Age 30.
3. How much will it cost — in future money?
Here’s what they don’t teach you in most classrooms:
Inflation eats your money like termites.
That car worth ₹6L today? Might cost ₹9L in five years. That Japan trip costing ₹2L today? Could be ₹3.5L when I go.
So I stopped planning for today's prices. I started using goal calculators and inflation-adjusted projections.
4. What am I willing to do for it?
This was the hard one.
Am I willing to cut down on impulsive Zomato orders?
To wake up early for a side hustle gig?
To invest every month, even when the market crashes?
Once I had these answers, investing stopped being overwhelming. It became purposeful.
Turning Goals Into Action: The SIP Way
Once I had clarity, I gave every dream a SIP. Every SIP had a name. Every rupee had a reason.
🏡 Goal 1: First Home by Age 30
SIP: ₹5,000/month
Instrument: Hybrid Mutual Fund (balanced risk)
Target: ₹10.8L down payment in 10 years
🚗 Goal 2: First Car by Age 26
SIP: ₹4,500/month
Instrument: Flexi-cap fund
Target: ₹3.3L in 5 years
🌸 Goal 3: Japan Solo Trip by Age 24
SIP: ₹5,200/month
Funded by side freelancing gigs
Called it: The Wander Fund
This method transformed my savings into strategy. It wasn't just about accumulating money. It was about building a life.
Early Mistakes That Became My Best Teachers
Trying to Do Too Much
I opened three savings accounts. Downloaded five budgeting apps. Started ten different Excel trackers. Within weeks, I was burned out.Thinking ₹500 SIP Is Too Small
I used to think, “What difference will ₹500 make?” Then I saw the compounding chart. ₹500/month for 40 years = ₹1 Cr+ @ 15%. Mind blown.Comparing Myself to Others
One day I felt proud. The next, I’d scroll through someone else’s IPO gains and feel like I was behind. Then I reminded myself:
Instagram is not a benchmark. Reality is.
Mixing Insurance with Investment
Ah yes. The ULIP trap.
Before Growing Wealth, Protect It
Investing is sexy. Protection is boring. But essentials come first.
Here’s how I protected my foundation:
Health Insurance: ₹5L base + ₹10L top-up
Term Life Insurance: ₹1 crore, pure term
Riders: Critical illness + waiver of premium
Why at 20?
Because insurance is cheaper when you're healthy and young. Because illness doesn’t care about your LinkedIn. Because love is also protection.
Retirement Planning at 20? You Bet.
It sounds weird, doesn’t it?
But here’s a shocking comparison:
Start ₹1,000/month at age 20 → ₹2.6 Cr by 60 (@15%)
Start ₹5,000/month at age 40 → ₹1.6 Cr
Time > Amount.
So, I created a SIP called: **"MudraRetires2064" **Because future me deserves dignity, not dependency.
The Tools That Made It Easier.
Apps: Zerodha Coin, Groww, Paytm Money
Books: The Psychology of Money by Morgan Housel
Sheets: A simple Google Sheet with all my goals, SIPs, and reasons
Mindset: “I’m not trying to get rich quick. I’m trying to stay secure forever.”
Resources That Helped Me Along the Way
I didn’t figure everything out on my own. In fact, most of what I learned came from quiet evenings spent watching YouTube, reading blogs, and experimenting with what I understood.
If you’re starting your personal finance journey, here are some free, beginner-friendly resources that helped me the most — and still do:
YouTube Channels I Keep Going Back To
Zerodha Varsity
A must for understanding basics like equity, mutual funds, asset allocation, and risk. Think of it as your free textbook for investing.Markets with Zerodha
For those who want real-world, market-relevant content explained clearly. Their charts, data dives, and interviews simplify what headlines complicate.Zero1 by Zerodha
Focuses on stories, behavior, and thought-provoking takes on money. Great if you're into the why behind financial decisions, not just the how.Groww
They break down mutual funds, SIPs, taxation, NPS, and more in Hindi and English. Simple language, real examples.G2G by CA Rachana Ranade (Get Set to Grow)
Hosted by one of India’s most loved finance educators. She covers budgeting, stocks, IPOs, and finance basics with clarity and depth.
Must-Watch Videos That Changed My Thinking
What is Mutual Fund? - CA Rachana Ranade
“How to Plan Your Goals (with Real Examples)” – Zerodha Varsity
Exactly the video that pushed me to make Excel sheets and stop saying “someday.”
“Asset Allocation for Beginners” – CA Rachana Ranade
Helped me balance safety and growth.
Final Thoughts: Personal Finance is Personal
There is no one-size-fits-all.
Some start early. Some start late. Some invest aggressively. Others safely.
You might feel lost. Overwhelmed. Behind.
That’s okay.
Because financial freedom isn’t a finish line. It’s a mindset. A habit.
One cup of chai.
One Google search.
One uncomfortable question.
One small action.
That’s how it started for me.
And maybe, that’s how it will start for you.
Let’s build wealth. Not with noise. But with intention.
— Mudra Dave