{"id":946,"date":"2018-09-11T12:54:51","date_gmt":"2018-09-11T07:24:51","guid":{"rendered":"http:\/\/www.parinitasharma.com\/?p=946"},"modified":"2021-10-16T00:32:55","modified_gmt":"2021-10-15T19:02:55","slug":"how-much-many-we-should-be-saved-at-every-age-of-life","status":"publish","type":"post","link":"https:\/\/www.parinitasharma.com\/blog\/how-much-many-we-should-be-saved-at-every-age-of-life\/","title":{"rendered":"HOW TO &#038; HOW MUCH MONEY WE SHOULD SAVED AT EVERY AGE OF LIFE"},"content":{"rendered":"<p>The most famous Proverbs that is very inspiring for all age groups\u00a0 Investors\u00a0<strong>\u2013<\/strong><\/p>\n<p><span style=\"color: #003366;\"><strong><em>\u201c<\/em><\/strong><strong><em>The best time to plant a tree was 20 years ago. The second-best time is now<\/em><\/strong><strong><em>.\u201d<\/em><\/strong><\/span><\/p>\n<p>Start investing as much early as you can and you will enjoy the real magic of \u2013<\/p>\n<p><strong>Power of compounding<\/strong>.<\/p>\n<p>The greatest advantage that you have by investing early is\u00a0<strong>\u201c<\/strong><strong>Time<\/strong><strong>\u201d<\/strong>.<\/p>\n<p>So, the sooner you start investing, the more time you will have for your initial investment to grow and compound.<\/p>\n<p>But where invest depends on where you are in your life cycle currently, and your investment portfolio or strategy will depend on it.<img width=\"300\" height=\"225\" data-public-id=\"smartlife\/smartlife_rupee_00001_72072f85\/smartlife_rupee_00001_72072f85.jpg\" fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-post-946 wp-image-720 alignright\" src=\"https:\/\/res.cloudinary.com\/dohr9kzty\/images\/w_300,h_225,c_scale\/v1634323671\/smartlife\/smartlife_rupee_00001_72072f85\/smartlife_rupee_00001_72072f85.jpg?_i=AA\" alt=\"\" data-format=\"jpg\" data-transformations=\"\" data-version=\"1634323671\" data-seo=\"1\" srcset=\"https:\/\/res.cloudinary.com\/dohr9kzty\/images\/w_300,h_225,c_scale\/v1634323671\/smartlife\/smartlife_rupee_00001_72072f85\/smartlife_rupee_00001_72072f85.jpg?_i=AA 300w, https:\/\/res.cloudinary.com\/dohr9kzty\/images\/v1634323671\/smartlife\/smartlife_rupee_00001_72072f85\/smartlife_rupee_00001_72072f85.jpg?_i=AA 730w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>As soon as we will\u00a0 closer to 60s, it becomes necessary for most of us, the investment corpus which we have accumulated so far is invested in a safe instrument. We cannot take high risk on that money!<\/p>\n<p><strong><em>\u00a0How to start Saving..?<\/em><\/strong><\/p>\n<ul>\n<li><strong>Look at your spending habits :<\/strong>Know what your priorities are.\u00a0Do you spend on new clothes every month, eating out, and movies\/concerts\/other entertainment? If you do so, that\u2019s fine if it\u00a0fits your prioritized list. If it doesn\u2019t and you are just spending money because someone in your known-circle or let\u2019s say your friend has the habit of doing so, then try to limit your expenses.<\/li>\n<li><strong>Decide on your goals:<\/strong>As you start earning some money, decide on your goals.<\/li>\n<\/ul>\n<p>You may have a goal for higher education or professional degree for your career, you may have a goal for your car in next 5 years or say for home in next 10 years. Unless you decide what you want to do next and what are your expectations with your life, you will not be able to plan &amp;\u00a0 achieve them.<\/p>\n<h2><span style=\"color: #993366;\"><em><strong>If you are in your 20\u2019s<\/strong><\/em><\/span><\/h2>\n<p><span style=\"color: #003300;\">If you are in your 20\u2019s, you are probably enjoying the greatest freedom you\u2019ll never know. May be, you have graduated from your college and moved on to the next stage of your life.<\/span><\/p>\n<p><span style=\"color: #003300;\">You may not have any responsibility as such right now.\u00a0 You are single, you do not have to think about the loan now, or children to care for.<\/span><\/p>\n<p><span style=\"color: #003300;\">In a lot of ways, this decade of your life represents an era of carefree wonder \u2013 the last decade you\u2019ll have before you take on the traditional roles and responsibilities of others, like your parents did for you.<\/span><\/p>\n<p><span style=\"color: #008080;\"><span style=\"color: #003300;\">It will offer you a chance to set yourself up for life, investing in your 20\u2019s may sound boring, but starting young is easily the best way to get ahead<\/span>.<\/span><\/p>\n<h2><em><span style=\"color: #ff0000;\">If you are in your 30\u2019s<\/span><\/em><\/h2>\n<p>Once you are in 30+ bracket of age, ideally you should be able to dedicate more savings from your income.<\/p>\n<p>When you are 30 years old, you would have a responsibility of your child\u2019s and create a separate financial plan for your children.<\/p>\n<p>But ideally you should increase your savings at this age.<\/p>\n<p>Basically, it means that when you invest for long periods of time, you start earning interest on interest.<\/p>\n<p>Here is an example of how compound interest can convert small savings in to large numbers.<\/p>\n<p>Just imagine that you are a 30 years old and love having coffee at branded coffee shop which costs you Rs 3,500 pm.<\/p>\n<p>But, one day you opted to drink at a neighborhood Tea stall shop instead, which you loved it and it cost you say only R 500 pm and remaining amount i.e. Rs 3,000 you set it aside and invest at 12% rate of interest for 20 years.<\/p>\n<p><strong>Can you estimate how much would you accumulate after 20 years?<\/strong><\/p>\n<p><strong>Its around Rs 29.7 Lakh!<\/strong><\/p>\n<p>Still desire that fancy coffee?<\/p>\n<p>There is a simple formula to get rich and handle the SURE EVENTS of our life. Start saving and invest it for SURE EVENTS like\u00a0 Kid\u2019s Education, kids Marriage, Retirement etc.,<\/p>\n<h2><span style=\"color: #800000;\"><strong>If you are in your 50\u2019s<\/strong><\/span><\/h2>\n<p>When you are in your 50\u2019s, you are nearing the end of your working life, and preparing for retirement. You should re-evaluate your portfolio and make up for the lost time.<\/p>\n<p>At this point you might think that you have everything figured out. However, you might want to consider re-balancing your accumulated portfolio, considering inflation and your living expenses.<\/p>\n<p>So, at this age;<\/p>\n<ul>\n<li>Consolidate your savings<\/li>\n<li>Put more in savings and rebalance your portfolio.<\/li>\n<li>Downsize your life style<\/li>\n<\/ul>\n<h2><span style=\"color: #993300;\">how to calculate that how much should I save every month from paycheck.<\/span><\/h2>\n<p>you should absolutely be saving a minimum of 10%, but you should be targeting for 30%+ as your income increases.<\/p>\n<p>Try to save as much as you can while still living your life and enjoying the moment. This is a tough balance for sure. If you spend money now, you\u2019re always adding more risk to the future, but if you save money now, you\u2019re possibly eliminating an experience or something that will enhance your life in the future moment.<\/p>\n<h3><span style=\"color: #339966;\"><strong>\u00a0what can you do? Here\u2019s one of the best ways to handle it<\/strong>.<\/span><\/h3>\n<p>As per Thum Rule of Financial Planning our compulsory saving must be 30%<\/p>\n<p>i.e 1) 15% short term<\/p>\n<p>2) 15% long Term<\/p>\n<p><img width=\"391\" height=\"476\" data-public-id=\"smartlife\/thumb-rule-of-financial-planning_dtfrav-1\/thumb-rule-of-financial-planning_dtfrav-1.jpg\" decoding=\"async\" class=\" wp-post-946 wp-image-948 aligncenter\" src=\"https:\/\/res.cloudinary.com\/dohr9kzty\/images\/w_391,h_476,c_scale\/v1634324590\/smartlife\/thumb-rule-of-financial-planning_dtfrav-1\/thumb-rule-of-financial-planning_dtfrav-1.jpg?_i=AA\" alt=\"\" data-format=\"jpg\" data-transformations=\"\" data-version=\"1634324590\" data-seo=\"1\" srcset=\"https:\/\/res.cloudinary.com\/dohr9kzty\/images\/v1634324590\/smartlife\/thumb-rule-of-financial-planning_dtfrav-1\/thumb-rule-of-financial-planning_dtfrav-1.jpg?_i=AA 640w, https:\/\/res.cloudinary.com\/dohr9kzty\/images\/w_246,h_300,c_scale\/v1634324590\/smartlife\/thumb-rule-of-financial-planning_dtfrav-1\/thumb-rule-of-financial-planning_dtfrav-1.jpg?_i=AA 246w\" sizes=\"(max-width: 391px) 100vw, 391px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"color: #ff00ff;\"><em><strong>MY SUGGESTION<\/strong><\/em><\/span><\/h2>\n<p>Make saving a habit in your 20\u2019s, even if it is a manager for 5-7% of your monthly income. Creating the financial ROOF will help you in any kind of an emergency .<\/p>\n<p>&nbsp;<\/p>\n<p>Thank you<\/p>\n<p>Regards,<\/p>\n<p>PARINITA SHARMA<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The most famous Proverbs that is very inspiring for all age groups\u00a0 Investors\u00a0\u2013 \u201cThe best time to plant a tree was 20 years ago. The second-best time is now.\u201d Start investing as much early as you can and you will enjoy the real magic of \u2013 Power of compounding. 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