With World Savings Day (October 31) around the corner, financial experts urge citizens to not just save, but invest wisely, to build long-term wealth
RAMANDEEP KAUR | NT NETWORK
Saving is the first step toward financial security but real wealth comes when those savings are put to work with patience and
smart planning.
Mindset before money
Dr. Celso Fernandes, known as Goa’s ‘Financial Doctor’, believes financial freedom starts with a mindset shift. A former dental surgeon with a 27-year career, he now guides over 4,000 families toward independence through Nave Marg Financial Services and the Nave Marg Foundation, promoting financial literacy, retirement planning and money
management education.
Recalling his turning point, Dr. Celso says, “In 2008, I realised how little most of us understand financial literacy. I worked hard to earn but I didn’t know how to make my money work for me. Even with three clinics, I earned only if I worked. That’s when I understood the importance of creating passive income.”
Saving isn’t enough
According to Dr. Celso, most Goans are savers rather than investors. “We Goans love to save, whether in banks, Mutual Funds or insurance but very few know how to invest and generate income from those savings. Saving is for emergencies but investing helps your money grow and earn for you,” he says. “If you don’t generate income from your savings, you either work until you die or live poor and die rich.”
Assumpta Fernandes, branch manager at a bank, says that a regular savings account helps build the habit of saving, while Fixed Deposits (FDs) and Recurring Deposits (RDs) provide stability and assured returns. “Once these basic savings habits are in place, customers can explore options with higher potential returns,” she says, adding that Mutual Funds, Systematic Investment Plans (SIPs) and government-backed schemes such as the Public Provident Fund (PPF), National Pension System (NPS) and Atal Pension Yojana (APY) are suitable for long-term wealth creation
and tax benefits.
Teaching kids the value of money
And financial literary should ideally begin early in small simple ways. For instance, Sharmila Valavalkar has been teaching her nine-year-old son the importance of saving and managing money. “We opened a bank account in his name and show him how to deposit any money he receives.” When he recently won a Rs. 10,000 cash prize, they deposited it to teach how saving can help achieve
larger goals.
At home, he also uses a piggy bank, adding small amounts daily and breaking it once a year on
his birthday.
The family encourages him to invest in learning rather than toys. “We have a home library and we guide him to use his savings for books and educational materials,” she says.
Certified financial planner Jeron Fernandes too believes that financial awareness should begin early. “Encourage children to save a small portion of their pocket money and maybe reward them at the end of the year if they manage to do so. As they grow older, involve them in preparing the household budget as it is a practical way to teach responsibility.”
17-year-old Keith Alemao started saving around six or seven years old. “If I did well on a test, I’d get a small amount of pocket money. I loved football, so I would save over a year or two to buy football shoes or other
things I wanted.”
From savings to smart investing
He started with Fixed Deposits but later moved to the stock market. “Fixed deposits offer steady returns but the growth is limited. Investing in indices like Nifty can yield higher returns if you analyse carefully,” says Alemao.
Patience, he believes, is the key to successful investing. “Investments can fluctuate but holding on can multiply your returns over months or years. From a financial literacy session at school, I learned that wealth is long-term, unlike short-term riches. That lesson has changed my approach
to investing.”
When deciding where to invest, Alemao relies on research and data. “I check websites like Trendline to see if a company is undervalued. I also study growth trends, forecasted earnings and expenses, since higher expenses can lower dividend yields. My focus is always on long-term growth.”
Publicly traded companies also disclose their financial positions and profit-and-loss statements, which makes his
research straightforward.
Starting small, thinking long-term
A working professional Danuska Da Gama began a SIP in college but paused it for urgent expenses and resumed a few years later. “Saving from a modest salary can be challenging,” she admits.
“Though it can pinch at times, the long-term returns make it worthwhile. Starting small is never a bad idea and young people should save whatever they can. I regret not thinking long-term earlier.”
Da Gama also hopes to expand her investments. “I wish I had invested in gold and I’d like to explore shares but I need to learn more first.”
Filling the financial literacy gap
Dr. Celso urges teaching financial literacy in schools. “Schools teach saving and colleges teach trading, such as futures, options and derivatives but no one teaches real investing or the power of compounding. Financial freedom comes when you learn to make money while you sleep.”
He adds that even with tools like Mutual Funds, many people misunderstand their purpose. “People are saving or trading through Mutual Funds, not truly investing. This knowledge gap must be filled early.”
Assistant professor of Economics, Government College, Quepem, Vikrant Mudliyar also suggests schools and colleges add financial literacy into the curriculum. “Modules on budgeting, interest rates, inflation and investments are essential. Simulation
exercises like mock stock markets and budgeting projects help students apply theory. Collaborations with banks or financial educators can enhance practical
understanding,” he says.
Mudliyar also stresses early financial education at home. “Teaching children about budgeting, delayed gratification and opportunity cost builds lifelong savings habits. Parents can encourage goal-based saving through allowances, piggy banks or minor savings accounts.”
Youth trends and
financial awareness
Mudliyar says that today, students have moderate awareness of saving and investment options but much of it is theoretical. “They know common tools like savings accounts or digital wallets but awareness of long-term instruments such as mutual funds, SIPs or PPF is limited,” he says, adding that fintech apps and social media spark curiosity but understanding is
often fragmented.
Student habits, he says, are changing. “Earlier, students focused on cash or bank balances. Now, many experiment with micro-investments, digital gold, SIP apps and even cryptocurrencies. The pandemic accelerated digital financial inclusion but focus often remains on short-term gains rather than disciplined investing,”
he explains.
To make concepts relatable, he uses real-world examples in teaching. “I compare Fixed Deposits with SIP returns for compound interest and use price changes in food or fuel to explain inflation. Case studies on youth saving patterns and stock market behaviour help students grasp risk, return and portfolio
diversification,” he shares.
Guiding young earners and seniors
Dr. Celso advises young earners to understand the difference between saving, investing, trading, and insuring. “If you master these four pillars and apply them wisely, you can grow wealthy in India. It’s not about how much you earn, it’s about how well
you manage it.”
He adds that one must divide their income wisely: save for emergencies, invest to grow wealth and spend responsibly.
For retirees, he suggests turning savings into steady income. “Many seniors live poor despite substantial savings. One of my clients, aged 65, has Rs.45 lakh in Mutual Funds but refuses to touch it. With a systematic withdrawal plan, even Rs. 25,000 per month can be generated from investments while the principal continues to grow,”
he explains.
He also recommends exploring Mutual Funds such as aggressive, conservative, hybrid or multi-asset funds to create steady income during retirement. “Retirement
should be about living with dignity, not worry. It begins with shifting from a saver’s mindset to an
investor’s mindset.”
A guide for every investor
Assumpta emphasises the importance of financial literacy for beginners. “We guide customers to understand their goals, timelines and risk tolerance. Digital tools help track expenses, monitor savings and invest systematically, while personalised support ensures strategies stay on track,” she says.
She adds that conservative investors continue to rely on government-supported schemes for stability. Popular options include PPF, Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Postal savings and tax-saving deposits under Section 80C. “These schemes offer secure returns and programmes like the Sukanya Samriddhi Yojana (SSY) also help safeguard the financial future of girls,” she explains.
Also, digital banking, she says, is engaging younger investors. “Simplified onboarding, low entry points starting at Rs. 1,000 and goal-based investment options are encouraging youth to start early. Many are showing interest in structured financial planning, which indicates a positive shift toward disciplined, long-term investing,” she says.
She adds that banks offer specialised products for different groups. “Women’s savings accounts provide added benefits and preferential rates, senior citizens can choose Senior Citizens Savings Scheme (SCSS) or higher-interest fixed deposits and low-income customers can open basic accounts with no
minimum balance.”
Planning and investing
with guidance
For those starting out, Jeron suggests beginning with SIP in a diversified equity mutual fund. “Alternatively, opening a RD account with a bank is also a good way to develop an investment habit,” he adds.
He cautions, however, against blindly following others’ investment strategies. “People often make the mistake of copying what their friends or neighbours are doing,” he says. “But everyone’s financial goals, priorities and risk capacity are different. Your investments should be based on your own needs.”
Before investing, Jeron advises assessing one’s risk profile and deciding on the right asset allocation. “As a thumb rule, you can follow the formula 100 minus your age to determine your equity exposure. The rest should go into safer options such as provident funds or fixed deposits,” he explains.
The gold, Mutual Funds and SIPs
Mutual Fund distributor Schubert Mathew Mendes says that gold is not just a precious metal; it is an international currency. “Historically, gold prices have risen during global crises or geopolitical tensions. Central banks stocking up on gold led to price surges, though we have recently
seen a dip.”
Mendes advises investors to keep about 10 to 15% of their portfolio in gold. “Avoid physical gold as you lose money to jeweller margins. Exchange Traded Funds (ETFs) are a better choice since they track gold prices without the need for storage. Sovereign Gold Bonds are another option, though high prices could make them difficult for the government to manage,”
he explains.
According to Mendes, Mutual Funds and SIPs have become the most accepted investment choices in India. “Consistent financial education and advertising have made people aware of the benefits of disciplined investing. There are nearly 10 crore SIP accounts in the country, with around Rs. 30,000 crore invested monthly,” he says.
With 27 years of personal experience and a family legacy of four decades in investment advisory, Mendes stresses the importance of time and consistency. “Wealth creation takes at least 10 years of disciplined investing. The power of compounding turns small, regular investments into significant long-term gains.”
He shows this through a simple example. “If given a choice between Rs. 10 crore today or Rs. 1 doubling every day for 30 days, most would take the first option. But the second grows to Rs. 108 crore. That is
compounding at work.”
Mudliyar too agrees that interest in Mutual Funds and equity investing is growing, thanks to easy-to-use platforms and peer influence, while participation in government-backed schemes such as National Savings Certificate (NSC), PPF and Sukanya Samriddhi Yojana remains low due to inability to counter rising inflation and long lock-in periods.
Changing investor behaviour
Mendes observes that investors today are better informed. “With easy access to information, people realise that inflation is high, jobs are not fully secure and future expenses will rise. The pandemic was a major
wake-up call,” he says.
He adds that technology and Artificial Intelligence (AI) have also influenced investment decisions. “With AI disrupting jobs, investors are planning for financial independence and creating income sources beyond salaries or business.”
For beginners, he recommends starting with liquid Mutual Funds. “They invest in government securities and bonds, are relatively safe and offer returns of around six to seven percent. Once comfortable, investors can gradually move to equity or balanced funds,” he suggests.
Balancing investments
Mendes suggests balancing Mutual Funds with traditional savings based on age and risk appetite. “Younger investors should focus more on Mutual Funds for growth. Older investors can gradually shift to safer instruments such as PPF or Fixed Deposits, though Mutual Funds should be part of the portfolio to beat inflation,”
he says.
Mendes adds, “Wealth creation is not about luck. It is about discipline, consistency and time. Small, regular steps can build a secure future.”
