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 Why you should start retirement planning today
future saving [Converted]

Why you should start retirement planning today

If you have just started earning, retirement may seem a long way away, but so are your retirement savings! It may seem like something we needn’t think about at this point of time in our lives, but the truth is – we have to. There is no shortcut when it comes to saving up, which is why it is essential to keep in mind some of the vital points to help save for a comfortable future:

Start Saving Today

Apart from the bank deposits or loans you pay, you have got to start saving. Saving doesn’t necessarily mean putting money away in the bank. It is always advisable to have a contingency fund that doesn’t take into account the living expenses involved every month.

An ideal strategy would be to start saving at least 10% of your income every month. If you think you can’t keep aside this money, then it would be better if you put the same amount in a recurring deposit or a Systematic Investment Plan.


Invest more, invest wise

As your income increases, so should your savings. One thing you should keep in mind is that, you cannot expect the same rate of growth in the future as it is in the present. Always keep in mind the economic aspect which will greatly influence the value of your savings. Which is why, you need to ensure that you always invest your surplus in the wisest manner. Do not, at any point of time, make a decision on an investment based on temporary circumstances.

If you are ever unsure of making the next financial move, never hesitate to consult an expert.
Check up on your stocks

When you are investing in the stock market, you have to constantly research and try to find out if the industry type as well as the company you have invested shows some sort or will show some promise in the future.

One vital thing is that you should never invest all of your savings into the stock market. Because, of there is one thing you can be sure when it comes to stocks is that, it is an entirely unsure territory.


Save at least 10 times your expenditure

All of us tend to save from what we leave after spending, but wouldn’t it be better if we can have a smarter way of going about this? Ever thought of saving as much as you spend, perhaps even more?

This requires you evaluating your future expenses (at the time of retirement), and try to save an amount that will cover all those expenses and leave room for some more. An ideal way would be to save 10 times as much as you anticipate to spend.


Don’t compromise

When it comes to retirement savings, do not compromise. Ever.

What most of us Indians believe in, is to always provide for our family irrespective of the stage of life we are in. Especially in the case where, parents tend to take the responsibility of educating their children by taking up the burden of their loan. This can be easily avoided, by teaching your children to take the responsibility of taking up a loan especially when it comes to higher education ( on the other side of it, your child will also get to understand what it means to save at quite an early stage in life).

This will also help you gain an early start on your savings, don’t you think?

Always keep the bigger picture in mind and start saving early, so that you don’t have to look upon your later years with regret.

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Priya Rai is a loan consultant.