While we are young and have the ability to save or invest we procrastinate a lot of things, one of which is saving for the future. This is one of the most common mistakes that everyone makes and is a BIG NO while planning for your retirement. Starting at an early age gives out the most benefits, you can also start with low investment and yet gain good returns as the period for which you would be investing will be longer.
When planning for retirement make sure you do keep in mind the rate of inflation. As time changes, you are sure to earn more but expenses also increase and of course, you do try to achieve a better lifestyle.
This increase in expenses has a great impact on the plan that we make for our savings. Here it becomes extremely crucial to keep in mind the inflation rate factor while you calculate the amount that would be required by you when you retire to be able to calculate the investment corpus effectively.
It is definitely not easy to have a perfectly directed path in your life but we all should surely plan out how we see ourselves progressing and what kind of lifestyle we expect once we turn old. As per this we should map our needs to the money required then and make a proper map which will lead us to the ultimate savings goal we need to reach.
While you are young they are few medical costs that incur in your life but your illnesses are likely to grab more money from your pocket as you age. We have all seen people facing critical illnesses these days which wash out all their savings and we surely don’t want you to be a victim of any such scenarios, do make sure you keep a good amount of savings for medical expenses so that it does not disrupt your other plans and become an obstruction in reaching to other goals.
They say a rupee saved is a rupee earned, so likewise investing that saved rupee at the right place is the interest earned! Investing at the proper age, with the proper corpus, in the proper areas is what makes all the difference. As an individual, you will come across many options of health covers, media claims, mutual fund investments, and trading in shares but one be lost in this pool of investment with poor or no knowledge. Undoubtedly there is a lot of information and knowledge available to help you juggle your way out but since you are not a master in it, getting a financial expert by your side is what can make your savings gold.