Okay. First things first. Let's assume you've decided to save up a bit. What do you do now? Read on.

You're probably about 25-30 years old. If you don't take your chances now, when will you? After two kids and a wife?

The best time to take risks is when you have the least amount of money at stake and not too many family responsibilities. In case you're wondering, that time is right now. If you don't take risks now, you may have to take far greater risks at a later stage when you are flooded with responsibilities.

Consider investing in the equity markets. Statistics have proven that the longer you remain invested in equity markets the greater are the chances of making some serious money. Therefore, at this age, equity markets are probably the best bet for you.

Consult an advisor to check on the options you have. There are a multitude of options available even for sums of as little as Rs 1000. Also, consider Systematic Investment Plans (SIPs) as an option.

How often have you heard your friends (usually the ones who are CAs) talk endlessly about section 80C? And how many times have you wondered what in the world this mysterious section was about?

Well, there's a good reason why everyone's talking about section 80C. It forms part of the Income Tax Act, 1961 and helps save a lot of money through tax benefits. Yet it's as simple as ABC. Click here to know more.

Do what's right for you. And not just because everyone around you is doing it. Parents and family members (primarily the older generation) will often advise you to put your money in low-risk instruments like fixed deposits, post office savings, NSCs, etc. These probably make a lot more sense for you at a later stage when you have family responsibilities. Plus instruments like fixed deposits are not very tax friendly. Consider other tax efficient investment options like Public Provident Fund (PPF), New Pension System (NPS), Mutual Funds, Stocks and Government Bonds.

PPF or Public Provident Fund is the safest and the most risk free form of investment in India. What's more, it gives you steady guaranteed returns year after year and is probably the most tax efficient financial instrument around. You must open a PPF account at the earliest.