Is 30 too late to Start Saving for your Retirement?

The essence of compound interest lies at the centre of this calculation. Although 20s is the best time to start saving and plan your financial portfolio, however, if you seem to have missed the bus, then 30s or even 40s too is not too late to start saving for your silver years.

Financial experts unanimously agree on one point – saving early helps you create a big fat retirement corpus even if you save meagre, but consistently over decades.

Financial experts unanimously agree on one point – saving early helps you create a big fat retirement corpus even if you save meagre, but consistently over decades. The essence of compound interest lies at the centre of this calculation. Although 20s is the best time to start saving and plan your financial portfolio, however, if you seem to have missed the bus, then 30s or even 40s too is not too late to start saving for your silver years. Saving money alone doesn’t help as much as investing your saved money does. There are three approaches to saving and making money viz: #1 – Conservative Approach wherein you invest cautiously only in safe investment instruments like PPF, Life Insurance Plans, and other government schemes, or even keep your money lying in Savings account to generate a paltry 4.5% interest per annum. #2 – Balanced Approach wherein you save money every month, take advise from financial experts and create a mixed portfolio which comprises of PPF and other innocuous options along with some investment in Mutual Funds or other market related investments. #3 – Aggressive approach wherein you’re smitten by some market gains and are ready to rake in moolah further, without assessing the risks associated with stock markets. As someone in 30s, you must stick to a balanced approach to avoid financial losses that can pose a big threat to you and your family’s financial security. Remember, continuity is the key to creating a healthy corpus for your retirement. Speak to your parents, close friends who’ve been there and have done good investments for themselves. Take services from financial institutions to handle your SIPs & Mutual Funds investments and keep monitoring yourself to understand whether your money is growing or depleting. Decide to part away with at least 20% of your monthly salary as soon as it gets credited in your account. Transfer it to your savings account and try to absorb your monthly expenses in 80% of your monthly income. If you are married, go with the rule of saving at least 40-50% together or sticking to 20% monthly savings individually. Sit with your partner and plan your savings and investments to see a progressive and financially fit future ahead!