Finance for Youth in Nepal: A Practical Guide to Building Wealth from Your 20s

In today’s fast-paced world, financial independence is one of the most valuable skills you can develop—especially if you start early. If you're in your 20s and living in Nepal, you have a golden opportunity to lay a strong foundation for long-term wealth.

This guide will help you understand the essentials of managing money, building savings, investing in Nepal’s financial market, and avoiding common money mistakes that can hold you back.

Why Your 20s Matter Financially

Your 20s are not just for discovering your passion or building a career—they’re also the best time to build healthy financial habits. Why?

Time is on your side – compound interest works best the earlier you start.
Fewer financial obligations – most people don’t have family responsibilities yet.
Learning curve – mistakes cost less and teach more in your 20s than later.

Step 1: Build a Strong Foundation – Financial Literacy

Before you invest or save, understand the basics:

What is budgeting? Create a monthly budget to track income vs. expenses.
What are assets vs. liabilities? Assets put money in your pocket (like shares); liabilities take money out (like loans).
What is compound interest? It’s interest on your interest—a powerful wealth-building tool.

Use free online resources, follow Nepali financial influencers, or read beginner-friendly books like Rich Dad Poor Dad or The Psychology of Money.

Step 2: Create a Simple Budget You Can Stick To

A budget helps you understand where your money is going. Try the 50/30/20 rule:

50% for needs (food, rent, transportation)
30% for wants (entertainment, shopping)
20% for savings and investments

In Nepal, apps like Khalti, IME Pay, or even a simple Excel sheet can help you keep track of your spending.

Tip: Try cash envelopes if you're not used to digital tracking.

Step 3: Build an Emergency Fund

Before you invest, have an emergency fund. Life is unpredictable—job loss, medical expenses, or family emergencies can happen anytime.

Save at least 3 to 6 months' worth of expenses
Keep it in a savings account or fixed deposit in banks like Nabil, NIC Asia, or Global IME

This fund is your financial safety net. Don’t invest this money—keep it liquid and accessible.

Step 4: Start Saving Early – Small Amounts Add Up

Even saving Rs. 1,000 per month from age 22 can make a difference.

Let’s do the math:

Saving Rs. 1,000/month at 10% interest (via investments) over 20 years = Rs. 7+ lakhs
Start at 30? You'll have less than Rs. 3.5 lakhs

The key takeaway? Start now, no matter how small.

Step 5: Open a DEMAT and MeroShare Account

To start investing in the Nepal Stock Exchange (NEPSE), you'll need:

DEMAT Account – This holds your shares electronically.
MeroShare Account – To apply for IPOs and manage your portfolio.

Open these through any bank or broker like NIBL Ace Capital, Siddhartha Capital, or Global IME Capital.

IPO Investing Tip: Start with IPOs—they’re safer and require less capital (Rs. 1,000 minimum).

Step 6: Understand Your Investment Options in Nepal

Nepal has more than just NEPSE. Here's where you can invest:

1. Stock Market (NEPSE)

Buy shares of banks, insurance companies, hydropower firms, and more.
Learn basic analysis: EPS, P/E ratio, dividend history

2. Mutual Funds

Less risky, managed by professionals
Good for beginners: NIBL Sahabhagita Fund, NIC Asia Dynamic Fund

3. Fixed Deposits

Banks offer interest rates of 7–10%
Safe, low risk—good for conservative savers

4. Employee Provident Fund (EPF) or CIT

If you work in a company, your savings may already go into these long-term funds.
Secure and tax-friendly.

Step 7: Learn to Avoid Common Financial Mistakes

Here are the traps that stop young people in Nepal from building wealth:

Living paycheck to paycheck
Relying too much on credit cards or “Buy Now, Pay Later” schemes
Not understanding where your money is going
Jumping into high-risk stocks or crypto without research
No insurance—leaving yourself or your family exposed to financial shocks

Start small and smart.

Step 8: Invest in Yourself – Skills That Pay for Life

Building wealth isn’t only about money—it’s also about increasing your earning potential.

Learn high-income skills like graphic design, coding, freelancing, digital marketing, etc.
Invest in online courses from Udemy, Coursera, or Nepali platforms like Online Pathshala
Keep improving your communication, networking, and personal branding skills

In Nepal, a side hustle or part-time freelance work can boost your income and savings rate.

Step 9: Think Long-Term – Set Goals

What do you want your money to do?

Travel abroad?
Buy a house?
Start a business?
Retire early?

Write down your short-term, mid-term, and long-term goals. This will guide how you save and invest.

Step 10: Track Your Progress Regularly

Every few months:

Review your expenses
Check your savings and investment returns
Adjust your goals if your income or situation changes

Use apps or maintain a journal. Celebrate small wins—it keeps you motivated.

Final Thoughts: Start Now, Stay Consistent

You don’t need to be a financial expert to build wealth. All you need is the willingness to learn, discipline to save, and courage to take small steps.

Your 20s can either set you up for freedom or decades of stress. Choose wisely—start your financial journey now.