It is always wise to start saving early so that you can live well in your old age. If you want to ensure a comfortable retirement, start using these tactics at an early age to ensure that you won’t face any issues later in life.
Estimate the need
When planning for retirement, you must first determine how much money you will need for future expenses. For instance, if you are 26 years old right now, everything will cost much more when you are 60. Make an accurate estimate of your expected expenses. If you are aware of this, you can make financial adjustments accordingly.
Invest
Make it a point to start saving money now from your income. Your monthly money should be invested wisely. You must make SIP investments, starting now. Even at the age of 26, you can make a sizable profit through SIP investments. SIP investments last between 25 and 30 years. The benefit of compounding will increase with the duration of the investment. A 25 to 30-year investment can also make you a millionaire.
50-30-20 rule of thumb
Use the 50-30-20 guideline while saving money. This rule states that you should set aside 50 per cent of your income for home-related expenses. Spend 30 per cent of your income on your interests and save 20 per cent. According to this rule, if your monthly income is 70 thousand rupees, you should withdraw 35 thousand for necessary costs, 21 thousand for leisure activities, and 14 thousand for investments. In 20 years, you could make more than 1 crore if you made a monthly SIP investment of 14000 rupees.
Financial Guidance
To save and invest money, you can also seek the help of a financial advisor. They can assist you in developing a more effective plan of action. With this, managing your retirement portfolio will be simple for you.
