Retirement planning: It is always a good idea to start saving at your early age so that you can live comfortably in your old age. If you want to ensure a comfortable retirement, start using these strategies at a young age to avoid problems later in life. Here are the ways that you can plan your retirement ina better way:
Calculate the requirement
When making retirement plans, you must first determine how much money you will require for future expenses. For example, if you are 26 years old now, everything will be much more expensive when you are 60. Make an accurate estimate of your anticipated costs. If you are aware of this, you can make appropriate financial adjustments.
Make it a point to begin saving money from your earnings right away. Your monthly income should be wisely invested. You must begin making SIP investments immediately. Even at the age of 26, you can profit significantly from SIP investments. SIP investments have a life span of 25 to 30 years. The benefit of compounding grows in proportion to the length of the investment. A long-term investment of 25 to 30 years can also make you a millionaire.
Thumb Rule : 50-30-20
While saving money, follow the 50-30-20 rule. According to this rule, you should set aside 50% of your income for home-related expenses. Spend 30% of your income on your hobbies and 20% on savings. If your monthly income is 70 thousand rupees, you should withdraw 35 thousand for necessary expenses, 21 thousand for leisure activities, and 14 thousand for investments, according to this rule. If you made a monthly SIP investment of 14000 rupees, you could make more than 1 crore in 20 years.
A financial advisor can also assist you in saving and investing money. They can help you create a more effective plan of action. Managing your retirement portfolio will be a breeze with this.