#finances

A great lifestyle at retirement is the most desired achievement of any individual. Whatever you may have earned spent or invested throughout your life, it is going to be reflected in the lifestyle that you maintain at your retirement. A dream retirement of any person is to retire with enough bank balance so that one can spend the rest of his life without worrying about money. Achieving that financial goal is not a task of a day, month or a year. One needs to work consistently for a long span of time to achieve the same. A disciplined financial life starting from the first day of earning is needed to maintain to reach that summit of life. A personal finance planner is must have for every stage of life so that you can reach the milestones of life without a financial hiccup. Here we have come with a financial planner which will guide you through every stage of your life in managing cum investing your money in a proper way. When You Are In Your Twenties This is the time when most of us start earning. One can consider this part of life as the best time as money is in abundance and very minimal financial responsibilities. Most of the youths are yet to get married at this stage hence the daily expenses are the only expenditure for most of them. The maximum number of this age group people are found to spend most of their earnings in lifestyle which is not correct if you see this from financial perspective. This is the time when people are at high risk tolerance zone. One can have more risk associated investments for an attractive return. This is even the best time for investing in long-term investments like purchasing a home, investing in equity etc. The ideal ratio of earning to savings/investment should be 40:60. This the time when one has to build the base on which a stable financial life is going to be settled. When You Are In Your Thirties This is the time when most of us get married and starts a family. A family is just the other name of an added social and of course a financial responsibility for both the spouses. Your expenses are going to be increased hence to maintain the balance between the expenditure and investment, you are to change the ratio. This time the earning to savings ratio should be 50:50. This means that one must be assured of saving at least half of the family income. The investment you can opt should be of mid risk level. Some of the investment options matched for this stage of life is health insurance, mutual funds, equities, real estate, and debt instruments. When You Are In Your Forties By this stage of life, one must have added a new responsibility to the life in the form of children. Bringing up your child in the best possible way is definitely a costly deal for anyone. But in another hand, your income must have increased significantly by now. In this stage, you should invest only thirty percent of your income as saving more than that will create a financial pressure on your family. The best investment in this stage of life is prepaying your existing home loan. Prepaying a home loan is considered to be the best investment as it makes you save a huge amount which was about to be paid in interest payment. The next investments that can be done is a health insurance, life insurance, child plans, pension plans, unit-linked insurance plans, gold, and recurring deposits. When You Are In Your Fifties This is the stage of your life when your children are pursuing their higher education or might have started earning. This time one must be focused on the retirement savings. If you were disciplined with your finance in past years, you can afford to buy properties or upgrade existing ones. If not properties, one can even invest in real industries as an additional source of income if you decide to lease them out. This is the time when your money should work for you. Be assured that you are going to retire with enough money so that you don't become a financial burden to your children. One must try to think about the cost of living, healthcare etc while keeping inflation in consideration. Gaining a financial peace of mind at retirement is very important. One has to plan this stage of life in such a way that after 5 to 10 years, you should not need to work to earn money. In Your Sixties And Seventies The time of your retirement has finally arrived. This was the time for which you probably have wanted the best. This phase of life must be passed with lots of comfort and peace of mind. You are going to get the returns from investing judiciously all these years. Here you are going to get the reward of the financial investments which you have done in earlier stages of life. Even it is advised to invest 20 percent of your monthly income so that you don't need to be in worry of drying up the liquid fund. One should invest in short term investments which are considered to the best at this stage of life. A senior citizen savings scheme is one of the investment types which is preferred by many at this stage of life. The key to enjoying success and prosperity in every stage of life is to have a disciplined financial habit from the very beginning your earning stage. There are numerous financial investments in India which a person can avail for a better life. When you start early, you get enough time to build your property, have proper financial investments and a good amount of savings. Every stage of life comes with some financial milestones to hit. Knowing your milestone will help you to create and protect your wealth in the present and in the future. #finances #retirementplans #savings #homeloans