We Indians are very lazy when it’s about saving for our own future. For us, living today is more than sufficient. However, we tend to forget that living life in the present is much more important, but at the same time saving for the future or retirement or our own old age is very much important. Do you know How to Plan your Retirement with 50-30-20 Formula?
Who sticks to old age? Kids or Pension? Please find an honest answer for yourself.
We earn hard and tend to spend all our hard earned money on our kids, considering them as our Investment Plan. So, we proudly say that we are investing our hard earned money on our future i.e. our kids. When they will be young and we will grow old, they are the ones, who will take good care of us. Hence, we do not need to save anything for our retirement or old age. Is it really true?
How to Plan your Retirement with 50-30-20 Formula?
After paying all your taxes, divide your earnings into three parts in the ratio 50%:30%:20%. Invest 50% of your earnings on your necessities which can’t be denied. Then, invest 30% in your wishes & desires. And, consider saving remaining 20% of your earning for your retirement or old age. Your 20% may not be a huge part of your earning, but at least you are saving something for yourself. And, then, you can invest this 20% in any of the retirement plans which suits best for you.This is 50-30-20 formula will definitely help you in planning your retirement; and, an independent & worry free life after retirement.
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We live in such society where spending on kids is our priority. We do not think about anything, all we want to fulfil all the wishes of our kids whether we are capable of the same or not. If we are not capable, we start borrowing money from our acquaintances or banks in the form of loans. Then, we tend to make the excuse that salary is not that high, need to pay bills, school fees, bank EMIs; so couldn’t save anything for the future or retirement. And, I agree that now-a-days, expenses are actually higher than our earnings. Stating that doesn’t mean that do not fulfil the desires or wishes of your kids, but fulfil there needs first & make them understand that they will have to make themselves capable enough to fulfil all desires for themselves so that they can imbibe the essence of earning.
Moreover, don’t you think, we are the ones who have raised our expenses by not controlling on our accessive desires? And, our kids are doing the same, in fact way ahead of us. Do live your life to the fullest today, but do save a little for tomorrow as well.
At the same time, you also don’t expect anything from your kids in your old age. Whatever, you do for your kids is your responsibility towards them. Don’t take it as your retirement investment plan. Avoid considering your kids as your Investment Plan. Your kids are not your future. Instead, your future is your retirement saving plan. So, be wise, think & save that way.
It’s never too late. If you couldn’t start saving early, start now. Be disciplined enough to follow 50-3-20 formula to plan your retirement. As an outcome, you will see that you have created an independent and respectful bright life after retirement for you.