Use your skills to boost your income sources.
While it looks dreamy to retire after working only for 12-13 years, let’s take a look at ways to achieve this financial goal before 35.
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People these days start investing early because they aim to reach their financial goals as soon as possible. Retirement planning has gradually gained importance. As per recent reports, around 38 per cent of Indians believe that the right age for retirement planning is below 35. On the other hand, 49 per cent suggest that when you start working, retirement is the first thing that should be planned. While it looks dreamy to retire after working only for 12-13 years, here are a few ways to achieve financial goals before 35.
Financial Freedom
First things first, achieving a goal should be your priority. One must make dramatic changes to their financial habits; and on the same path, investing more of your money is the first step. You should also start saving 70% of your income. It may be hard at first, but will get easier over time. Just know that the sacrifices you are making now are all in support of your goal.
Boost Your Income
Use your skills to boost your income, even when you have a stable day job. You can either start a site or make your own YouTube channel or can also go for freelance writing. Work hard in your office as well, so that you are confident enough to ask for promotions. More income, more savings, and investments. Isn’t it an easy retirement plan?
Review Your Spending Monthly
You must know where your money is going. While a lot of people lack the discipline to review their spending once a month, a little awareness can make a huge difference. Keep a check on your fun spending, monthly subscriptions, and small expenses like eating out. Understand every line on your bill rather than just throwing it away. This will help you be aware of what is working against you.
Estimate Of Funds You Need For Retirement
The funds you need to retire in India depend on your lifestyle goals, expected sources of retirement income, and inflation. To estimate the amount of money you need for retirement, here is the easy formula:
Retirement corpus = (annual expenses X number of years in retirement) / (1 + inflation rate)^(number of years until retirement)
For instance, if your annual spending will be Rs 10,00,000 after retirement and you are planning to retire after working for 20 years with an inflation rate of 6%, the retirement corpus you need will be Rs 2.5 crore.
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first published:September 06, 2023, 12:55 IST
last updated:September 06, 2023, 12:55 IST
