A study shows
that of the Generation Y – those born between 1980 and 2003, almost 60% do not
think about their retirement plans at all!
The biggest myth
about retirement is that we believe that we are too young to start planning.
We’re going to bust that myth today –because the earlier you start planning and
working on your retirement the easier it will be for you.
life they want to live today with the life they want to live in retirement, is
not as hard as it sounds.
KNOW YOUR EXPENSES
The first step
to planning your retirement is by knowing how much you’ll require to keep your
lifestyle the same. Calculate your monthly expense, and make sure that your
retirement plan covers that amount. Often, it has been found that retirement
costs more than what you need for your current lifestyle. So, make sure that
you are prepared to meet those expenses as well!
PLAN TO MEET THEM
Once you know
how much you need, the next question you need to ask yourself is this: How are
you going to meet this expectation? How are you going to save up to this? You
need to strategize your current wealth and earnings in such a way that they are
channeled into a secure retirement fund. Stick to the plan, and do not retract
from your goals and targets.
START SAVING AND INVESTING
Be smart, cut
down on your daily expenses and save as much as you can. When you spend so much for your daily coffee
– almost Rs. 160 in Starbucks or CCD. All these amounts add up into the Latte
Effect. Consider Rs. 150 twice a week – this adds up to about Rs. 1200 a month.
Imagine what Rs.
1200 SIP in a good equity fund can do for your portfolio over the next 40
dimension of your lifestyle is worth saving, and will fatten up your retirement
Happy Saving J
WRITTEN BY: BALAKARTHIGA.M