The Hindu Business Line : They splurge... and save too!

Nikhil Agarwal, 26, works hard and plays equally hard. An executive with wine company Sula Wineyards, he is not apologetic about his lifestyle or worried about money.

Like many others his age, Nikhil spends his money on buying CDs, weekend outings with friends, and travel. Last month, he combined a business trip to Bordeaux, France, with a week's holiday trip across Germany and Austria. He recently spent a lot of money flying down to Bangalore for the `Sting' concert. "It was a dream come true for me,." He also takes off to Goa whenever time permits, and parties hard.

Like him, many youngsters today live life on their own terms, thanks to financial independence. Nikhil, for instance, spends nearly Rs 18,000-20,000 every month on his favourite indulgences. "It was different during our parents' time, maybe because jobs were hard to come by and money was a scarce commodity. But today, I know many people who chuck jobs either for better money or because they just want a change," he says.

And while today's 40-something professionals might cut back on some indulgences to be able to plan better for their retirement, many youngsters believe in the live-for-today philosophy. Pranali Patil, a 24-year-old executive with public relations company Zebra, is the quintessential young urban professional who combines a hectic work schedule with recreation.

"I love shopping and most of my money is spent on buying shoes and bags. I buy at least one pair every month and a bag every three months. I love buying watches too. But usually try to give away an existing one to someone in the family before I buy another one, so that I don't feel too guilty about splurging. I got addicted to the Rs 6,000 I started earning in 2001, and decided to continue with my job alongside my plans for higher studies."

The salary has since multiplied but so have her necessities, says Pranali who spends a good part of her salary on clothes every month. "My profession requires me to have a good mix of smart casuals and formals for client meets, and even party and evening-wear when I am networking or just having fun. I also need good salwar kameez sets for family functions; and I don't like to repeat clothes much."

Saving for the rainy day

Unlike what older people might say, it is not just mindless spending and fun for these practical youngsters. Take Urmila Dabholkar, the 26-year-old daughter of adman Bharat Dabholkar, who runs Mumbai's only dog-grooming salon, Tailwaggers. "Saving is a way of life for me, something my parents have instilled in me from childhood. I have seen my mother do it and it comes naturally. I do love to spend on books and travelling, but as a rule I try to save at least 50 per cent of my earnings every month."

Savings is also high on the priority of Mandanna K.M., who is in charge of logistics management at DaimlerChrysler India. Though he splurged during the early days of his career, he says that having a family — wife and a child — has brought about a change in perspective. "I still spend on expensive dinners, branded clothes and other things, but do analyse if I get value for my money."

The last few years have seen Mandanna save 30-40 per cent of his salary and perks every year, and he invests it in stocks and property. "My investment has appreciated 70 per cent in the last couple of years, because I base it on sound information, the opinion of people in the know and my own analysis."

With another baby on the way, Mandanna says the need to save for eventualities is more. The couple follow a simple principle to manage their finances. "We draw up an Excel sheet of our investments/assets and liabilities, and continually work towards increasing our assets and net worth," he says.

Pranali too is focused about her money and the youngster has been saving around Rs 4,000-5,000 every month for the last couple of years and parks the money in FDs and other safe saving options. She will use that money to buy jewellery for her wedding next year, she says.

Nikhiltoo aims to save one-third of his salary every month to help start a business a few years down the line. "Right now I save Rs 10,000 a month so that I can fund my business and not depend on anyone during the transition period," he says.

For someone who has a flourishing business, Urmila's spending is directly connected to her first love — pets. "I love to travel and I don't think twice before setting out on a journey. When I travel abroad, I visit many pet shops and splurge on a new shampoo for my dog, a special collar or a delicious new snack. I have had a dog from age two, and to this day when I buy something for myself I have to buy something nice for my dog too."

They want to be independent

Many of these youngsters emphasise that they would rather spend their own earnings than depend on parents. "Money makes me self-reliant. I know many youngsters who live off their families, but that's not me. I have been saving and would love to buy a house in three years," says Urmila.

"At present I don't have to contribute a single rupee towards running the family, because my parents don't expect me to. But if I had to pay the electricity or telephone bill, or procure the grocery, my lifestyle would definitely be different, more low key," admits Nikhil.

Pranali doesn't believe in burdening her family with her expenses. "My father passed away some time ago and though I don't have to contribute towards family expenses, I don't want my mother to spend her savings for my wedding; so I try to save as much as I can," she signs off.

Picture by A. Roy Chowdhury

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