Three Rules for Retirement Planning

You're medically fit and apparently in your twenties or thirties, so why should you be thinking about your retirement right now? The fact is that a lot of industry professionals consider that you must begin your retirement planning from the very first day you start making money. However, let's be frank; how many of us have actually done that? Possibilities are, very few. But, don't worry. Act in accordance with these 3 rules for retirement planning and you are going to be well on your way to a peaceful retirement time.

1. Save 10% of your salary as savings for your retirement

Often, retirement plans turn out to be a good monetary help for a lot of people. It doesn't matter what amount you actually put in each month, what matters is the regularity of contribution. These long term saving plans pay off enormously in the future with the power of compounding. That is the reason why it is essential to start early. This is one of the most fundamental rules of Retirement Plans.

If you are self-employed, then it is of more importance that you get yourself insured and save money on regular intervals via a retirement plan.

     2. As you get an increment in salary, increase your investment as well

Just got an increase in salary? Kudos! But that does not mean that you go out and purchase a designer bag. What you should be doing is saving more in terms of your investments. Sure, everything is more costly than it was. But, rising prices are an inescapable truth of life and increased cost of living is a big reason to enhance your investments.
Say you get a hike of approximately 10% every year and consequently you add to your investment, this will make you gain a good retirement corpus.

     3. First, Save for Retirement then for Education

Our children are our first concern and every parent wishes to offer their child the very best in life. However, that often means making a compromise with your own future.

As we all know, there is no loan available for retirement. You're on your own where this is the matter. Therefore, start planning for your retirement early on in life and plan sensibly. This will help you lead a life of independence in the future, by not being dependent on anybody for money.

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