Nikhil Kamath: Nikhil Kamath from Zerodha has some tips for Gen-Z: Save money by moving to a tier 2 city, cash is vital

In an age of work flexibility and the growing propensity of young people to diversify their careers and maximize their wealth, any advice can be of great help. In a recent interview, Nikhil Kamath, co-founder of Zerodha and TrueBeacon, offered his advice to young people looking forward to building their careers and securing their financial future.

The 34-year-old also divulged some lesser-known details about his career trajectory. Kamath spoke to management consultant turned content creator Sharan Hegde in an exclusive interview where he talked about his career and offered advice to young people.

The influencer said most of his following are from the five major metropolitan cities and he starts with a salary of Rs 30,000 to 40,000 per month. According to Sharan, during the initial phase of their career, most people don’t think about investing. Highlighting the difference between investments made by those earning Rs 12 lakh a year and those earning a few crores, the influencer then asked Kamat for his advice for youngsters.

What is your advice for someone earning Rs 12 lakh per year?

“When I started working about 18 years ago, despite the inflation at the time, I think my salary must have been Rs 8,000 per month. Where you live and how you live sort of defines how much money you have to earn. So first advice, if you can work from home and you are going to an expensive city like Mumbai, Delhi, Bangalore, it might be safe to go out and explore a tier 2 city,” Kamath said.

According to the entrepreneur, returning to cheaper cities takes away the proximity of the office and has a considerable impact on the cost of living as well as on the environment.

The billionaire said any 27-year-old earning Rs 12 lakh a year shows risk appetite at a significant level. They will likely see an increase in their income for at least the next decade.

Investment wisdom

Kamath, who has revealed that he is quite conservative and a little pessimistic when it comes to investing, said putting 20-30% of his income in stocks, another 30-40% in asset classes that don’t have not too many risks such as gold, fixed income securities, tax exempt bonds, corporate debt funds, etc., were a great way to invest. “The balance, I think, should be a mix of maybe real estate and some kind of liquid savings that you can access anytime,” he said.

The Zerodha co-founder also pointed out the futility of arbitrary money in reference to the Covid-19 outbreak. He said cash is vital and everyone should keep it for emergencies.

According to Kamath, someone who is in their mid-20s, to build their foundation, they need to figure out how to arbitrate geographically. Basically, move to a cheaper place, save money; work on their future financial goals.

In the same interview, Kamath shared his thoughts on hedge funds, cryptocurrencies, DeFi projects, his side projects, and the five people he surrounds himself with.

Content creation is the next big thing

When asked what the next big thing would be, Kamath said content creation would be the next big thing. “Marketing has been a constant in business over time and there have been different means of marketing. And whenever you can catch an industry as it transitions from A to B, you often end up catching the point of inflection if you’re doing something right. I think content creators aren’t just for entertainment or branding or news consumption. In many ways, content creation will become so relevant tomorrow,” he said.


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