New Delhi, Aug. 8 -- For 25-year-old first-time earner Rony, starting his investment journey can feel extremely overwhelming, especially when the markets are volatile, and considering that his risk appetite is low. With no experience navigating the market cycles, the biggest challenge is not chasing returns but building confidence without taking on more risk than he can handle. A simple, disciplined approach can help him start investing without getting hassled by short-term market swings - but the point is where and how to start, and what the roadmap should be.

A pure four-step formula can put Rony's finances in order, Shashank Udupa, SEBI-registered research analyst, asserts

Keep around 12 months of expenses in a liquid fund or sweep-i...