The whole concept of “Savings” has been changed due to generation change. While older generation wishes to “Save First and Spend the Rest” now the current generation is following “Spend Lavishly(with credit Cards and EMI’s)by enjoying the current moment”.
While older generation lives comfortably with their “Savings” the present generation is looking towards EMI(Easy Monthly Installment)Purchases and loans. Though it is not a wrong thing to do, many youngsters are falling into “Debt-Trap” offered by the financial institutions and NBFC’s(Non Banking Financial Institutions)
Youngsters are assuming that they are earning lakhs of salary in their initial careers, what’s wrong in opting for loans and EMI’s? They are not thinking over the ups and downs of life! They have to think over “Emergency Needs” as life is uncertain as no one would predict the future. They have to understand that- “If you are not ready for future emergency needs, even your friends (infact God)can’t help you during financial crises. Take for example- “Corona” so many families feels the heat as they are not financially prepared for such financial crises! So let’s wake up yours savings nature! Do remember the quote-
“You are sitting in a shade of a tree, because some one has planted a tree 20 years ago”
What to do to lead a better financial future?
We are not saying to save 90% of your salary which is a unrealistic goal. Instead try to save 20-30% of your salary from your 1st salary itself. Some may argue that this may not be possible. But it is a realistic goal.
As a youngster you don’t have any financial responsibilities(as you are unmarried and independent). Financial Planners suggests that “Investing in 20’s is the best time to create wealth for your retirement”
Again argument arises- We are only in 20’s, why should we think over retirement(60 years of age) at such an young age? The answer is simple- To create long term wealth(as you have “Time’ on your side)and to live comfortably during your golden years, you should start investing Right Now.
What if you have missed the bus?(Crossed 20’s and currently in 30’s)don’t worry. Being humans it is not possible for all to start investing from their 20’s. But there’s a need to realise the need to start investing right now(even in 30’s). The moment you realised the need for retirement planning is the best time to start investing because the famous quote says-
“The best time to plant a tree was 20 years ago; the next best moment is Now”
So don’t procrastinate investing for retirement. It’s better to plan for your golden years from your 1st salary itself! If it’s not possible don’t delay Even if you are in your 30’s you have 30 more years to plan for retirement to benefit from “Power of Compounding”
Power of Compounding works best if you gives time to compound your wealth. The longer you stayed invested, the better the returns. That’s why Albert Einstein named “Compounding is the 8th wonder of the world”.
So it is in your hands to compound your wealth. Financial Planners suggests that if you have planned your retirement as early as possible(Probably from your 1st salary)no force can stop you from being a crorepati.
If you didn’t start investing from your 1st salary, don’t procrastinate- The moment you realised the need of retirement planning is the best time to start investing for your crorepati goal. But sooner the better as your wealth compounds if you give “time” to multiply (compound) your investments.