You must be tremendously enjoying if you are in your 20’s. You would have just graduated and would have even got employed. You don’t have a spouse to amuse or progeny to treasure. You’d be having the time of your life like you did when you were younger; just that you enjoyed more in your younger days than you do now. But you’re having the time of your life more now than you would do when older.
This is the epoch in your life where you have that cheerful awe and is the last decade of your life before you become like older people (getting wedded and having your own lineage). Since you are yet in your 20’s, you will have the strength to withstand and face risks. This is the voracious time for you to commence saving and investing. This might sound tedious, but trust me this actually benefits you in the long run. Here is a list of ways through which you can start your financial planning.
Clear all your debts first:
Having student loans and a habit of spending recklessly will prove to be a huge drawback and will withhold you from being able to invest and save. Settle your dues and ridden yourself of bad habits that prompt you to overspend.
Become a key saver in your younger days:
The younger you are when you commence, the more you will be able to save for emergencies and your retirement (For Retirement planning Advice). Always remember, time is your asset. You can begin early.
Save more money as you age:
When you start investing, you might be saving 1% of your income. As you grow older, continue saving 1% and see your savings ramp up by 10% when you are in your 30’s.
Forget the non-existent “Sharma ka beta/beti” or what he did:
Remember that “Sharma ka beta/beti” your parents always compared you with? That nonexistent Sharma and his children might be spendthrifts while you are saving your money, but later you will have money while the same Sharma and family will be penniless. They just show off on social media how platonic their lives are when in reality such people’s lives aren’t as spotless as they claim it to be. Your friends who are possibly on a cruise might have not kept the money for their retirement at all.
Invest in your growth:
Improve your proficiency, command, and conviction. Ensure that you are growing in your competence. Read books and travel for the sake of knowledge. Travel only when you have enough money.
Sustain yourself and live simple:
In today’s era, people have a craze for shopping which has increased manifold thanks to advertisements and advertisers but 90% of the commodities bought are useless. Rather than buying those useless commodities, save that money for your future. You can use that for an emergency, for a bit of travel or for your retirement absolutely not on those futile commodities which advertisers promote!
Save as much as you can, each time:
Now just because it is said that you’ll be financially stable only if you save 20% of your income each month but you can’t, don’t get disheartened. You can save 1% each month too. Just save as much as your vital monthly expenses permit you to.
Have separate funds for emergency and retirement:
Ensure you put some money into your emergency savings and retirement savings each month. You don’t want to withdraw from your retirement fund in case of a crisis like a job loss.
A single drop of water creates an ocean:
No amount is too less to save and no time is too early to start saving. Drops of water can make an ocean. Similarly, over time, your tiny amount can turn into a significant amount of money.
That’s how you can save money not only for emergencies but also for retirement. For more information, visit www.moneymindz.com or give a missed call to 022-62116588.