Mia, Credit Analyst, Mumbai: SIP investing and why credit cards are a scary topic

In part 4 of our series on working women and their relationship with investing/finance, we spoke to Mia a 26 year old Mumbai based credit analyst at a MNC bank. Please note the conversation has been edited and condensed for clarity. If you would like to speak to us about your investing experience, please reply in the comments below.??

What do you do? What role did money play in your career choice?

I am a credit analyst at a European bank. I analyse a company and recommend if the bank should lend money to this company or not.?

I am a commerce graduate. I had no clue what I wanted to do after college. My brother nudged me to go for the MBA degree, just as he had. I started at the bank right out of MBA and really like what I do now. I have been here for four years.?

When I started working, I had no idea about money or investing. I used to spend all of my salary on travel, food, games and clothes. The first year I somehow ran a HUGE credit card bill. I had to ask my parents for help paying it back which was really embarrassing. After that my father set up 3-4 systematic investment plans (SIPs) for me. That is when I started to pay attention to investing.?

"The first year I ran a HUGE credit card bill. I had to ask my parents for 
help paying it back. After that my father set up 3-4 SIPs for me."        

What percentage of your income do you save every year?

I live with my parents. Around the 5th of each month, a portion of my paycheque is automatically set to go into SIPs and a recurring fixed deposit (FD). The rest I usually spend on clothes, eating out and movies. The annual bonus I have been putting into a fixed deposits, because my father recommended it. Interest rates are really high right now.??

What do you want to splurge on, save for, and invest in 2023???

I want to go to the U.S this year to see my brother and sister-in-law. We haven't seen him for 3+ years now.? We do not have our U.S visas yet (shrugs).?

I want to do a master’s degree in the U.S at some point in the next 1-2 years. It will be really expensive so maybe i should be investing more for that.??

Who do you bank and/or invest with? What do you like/dislike about the relationship? ?

My salary gets credited at Private bank X. I invest with them because it is convenient.?

How would you categorise your relationship with money? Do you worry about it?

I don't worry about money as such, except that one time I ran a huge credit card bill and had to ask my parents for money to pay it. It was the first year I had started working. I had never used a credit card before and didn't understand why paying the minimum amount each month was bad. Lesson learnt! I am still afraid of using credit cards to this day.?

"I have never bought gold on my own. On my birthday, my mother buys me a
small piece of gold/silver jewellery."         

Do you invest in mutual funds, stocks or gold? If not, what has stopped you from exploring mutual funds and stocks till date, what stops you from doing it now?

Mutual funds are mostly through SIPs that my father has selected. Every couple of months, I send him a statement of my investments and he reviews it to see how they are doing.?

I have never bought jewellery on my own. My mother buys a small piece of gold/silver jewellery for my birthday. For the last couple of years I have gone with her to the store. Our choices do not match anymore. I like designs that I can wear to work.?

If you could time travel, what is the one message you would tell your 21 year old self about money, investing and finance?

To not spend so much money on clothes. My entire college wardrobe is useless now that I work at a bank.