Most of us are convinced about the movement of time. However, we fool ourselves into thinking that others will age, while we won’t. How otherwise can lack of retirement planning be explained? We choose not to pay too much emphasis to it till the time age really knocks on us, and perhaps it’s too late by then. What if we could start planning for those ‘beyond-60’ days when we are in our 20’s? Could be nothing but great! Here are ways on how you can make retirement planning at an early age.
Form a habit of depositing into the Super account early on
Frequent deposits into the Superannuation account when you are still in your 20’s can help you accumulate quite a bit in the long term. If you are doing it right at this age, you won’t have to compensate the negligence of your early life with big deposits at a later age. This knowledge is crucial because age impedes our capacity to deposit large funds, and every time we have to do so, our living is terribly affected.
More financial waves to latch on to
Every decade brings one phenomenal financial wave. Add to the list a couple of less consequential ones. So even if you miss a few of them, you will definitely catch a few if you begin early. Over a period of time, your retirement nest egg will be boosted. Of course, you have to be cautious with what you choose as your investment vehicle. In my opinion, at any stage, your portfolio should be diversified enough to hold a mix of growth assets and income generating assets.
Avoid credit card trap
If you ask me, I have seen many fumbling over their credit card debts at this stage. The propensity towards seizing the day is all too big and often, this leads us to reckless plastic shopping — the pain of which accumulates in time and hampers our financial planning. “Spend only as much as you can pay” should be the mantra and most definitely so when you are in your 20’s.
The good point with technical evolution is that you don’t have to wait too long to deposit the money and hence, the chance of “change of plans” is pretty slim. We can make an online deposit or an electronic fund transfer in a matter of seconds, after all.
At the rate we are adding to the population kitty, our country may find it increasingly burdensome to cope with the retiring workforce when it is our time to call it a day. Naturally, the pension schemes may not sustain us at that point in future. What we need is a thorough retirement planning — one that begins at an early age.
How do you diversify your investments?
