Senior Citizen Financial planning: Invest enough in your youth so that you don’t have to face problems in your old age

Financial planning: Money has become the biggest need in today’s economy. If wrong decisions are taken in youth, then old age can be difficult. Therefore, it is important to start creating a strong fund for retirement from youth itself, so that financial difficulties can be avoided in future and life remains comfortable

Senior Citizen Financial planning: You must be thinking that if you have 1 crore rupees, then all the needs of life will be fulfilled. But have you ever thought how much this amount will matter to you in the future? The amount that seems big today, may not be that useful tomorrow. Inflation keeps increasing gradually every year and with it the cost of our needs. In such a situation, if you do not plan for the future properly, then there may be problems after retirement. Many times we assume that the amount that seems enough to us today will be enough in the future too.

But the reality is completely different from this. Therefore, it is important that you understand today itself how much your money will last in the future and plan your savings and investments accordingly.

Rule of 70

The ‘Rule of 70’ is a simple way to know how much your money will be worth in the future. In this, you just have to know the current inflation rate. When you divide 70 by that inflation rate, the number that comes out will tell you in how many years your money will be halved. For example, if the inflation rate is 7%, then 70/7 = 10 years. That is, in 10 years the value of your 1 crore will become like 50 lakhs.

Why is correct financial planning necessary

People often think that just saving a fixed amount is enough, but they ignore the effect of inflation. Just saving is not enough, you also have to understand what value that amount will have in the future. With simple formulas like the Rule of 70, you can make your planning realistic. This will give you a clear idea of how much money will really be needed in the future.

Set the right goals

To avoid financial problems in old age, it is important that you start investing as soon as possible. Review your financial goals regularly. Keep changing your strategy according to market conditions and inflation. Remember, the value of rupee depreciates over time, but with proper planning you can meet your future needs.

Smart Planning

To avoid financial crisis in old age, start saving and investing from a young age. Invest at least 20% of your income every month in retirement funds. Choose options like SIP, PPF, and mutual funds. Set fund targets keeping in mind the inflation rate. Understand the decreasing value of money from the Rule of 70 and make long term plans accordingly.

To avoid financial crisis in old age, start saving and investing from a young age. Invest at least 20% of your income every month in retirement funds. Choose options like SIP, PPF, and mutual funds. Set a fund target keeping in mind the inflation rate. Understand the decreasing value of money from the Rule of 70 and make a long term plan accordingly.

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