How I Plan to Invest ₹1 Lakh as a CS Student (The "3-Bucket" Strategy)

#finance #career #student #productivity

If you suddenly found yourself with ₹1,00,000 (~$1,200) in your bank account today, what would be your first move?

As a college student, the temptation to spend is massive. A new MacBook, the latest iPhone, or a trip with friends. Even if you decide to be responsible and "invest," the internet is flooded with dangerous advice. "Buy Crypto!" screams one YouTuber. "Put it all in Option Trading!" says another.

I recently faced this exact dilemma. As a Computer Science student who is also passionate about building projects, I realized that standard financial advice doesn't apply to us. We aren't employees with a stable salary. We are students.

After weeks of research, I developed a framework tailored for student developers. I call it the "3-Bucket Strategy."

"The goal isn't just to grow the money. The goal is to survive college stress-free while funding the projects that will build my career."

The Visual Breakdown

Instead of just listing numbers, here is how I am splitting my capital:

Bucket 1 (50%): Safety (Fixed Deposits)
Bucket 2 (20%): Business (My Projects/APIs)
Bucket 3 (30%): Growth (Index Funds)

🪣 Bucket 1: The "Sleep Well" Fund (50%)

Allocation: ₹50,000
Instrument: Fixed Deposit (FD)
Risk: Zero

This is the most controversial part of my plan. Many people say, "FDs are boring!" But as a student, mental peace is my most valuable resource.

If I am worried about how to pay for an exam fee or fix my laptop screen, I cannot focus on coding. This fund is my shield. It guarantees that no matter what happens to the market, I can survive the semester.

💻 Bucket 2: The "Business Capital" (20%)

Allocation: ₹20,000
Instrument: My Own Code
Risk: High (But High Reward)

This is where I differ from normal investors. I believe the highest ROI (Return on Investment) is in my own code. I am treating myself as a startup.

I am using this money to fund:

Hosting & Domains: For my portfolio and web apps.
API Credits: Paying for OpenAI/Gemini APIs to build AI tools.
Marketing: Small experiments to get my first 100 users.

The Math:
If I invest ₹20k in stocks, a great year gives me ₹3k profit.
If I invest ₹20k in my website and it earns ₹1k/month from ads, that is a 60% return. No stock beats that.

📈 Bucket 3: The "Future Wealth" (30%)

Allocation: ₹30,000
Instrument: Nifty 50 Index Fund
Risk: Moderate

This is for the "Me" of 10 years from now.

I chose an Index Fund because I don't have time to analyze individual stocks. I am busy learning Data Structures and React. By buying the Index, I am betting on the top 50 companies in the country. I won't touch this money for 5+ years.