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A Guide to Personal Investing and Retirement

When you’re starting your investment journey, it is not enough to just think about your financial goals. Instead, you should also look to approach your investment with a focus on your retirement. If you’re not well-versed with investment and retirement planning, then this guide is for you. Following the step-by-step process outlined here can help you satisfy your financial goals and secure your post-retirement life.

1. Start investing early

One of the best ways to ensure that you fulfil both your financial and retirement goals is to start investing as early as possible. In fact, you should look to invest as soon as you start earning. This not only gives you a massive head start, but also allows you to fully utilise the power of compounding, through which you can build a large corpus.

That’s not all. One of the major advantages of starting early is that you don’t have to invest a lump sum amount right away. On the other hand, since time is on your side, you can afford to start investing small amounts consistently over a long-period of time. And as time passes by, you can slowly increase your investment amounts.

2. Know your investment options

In India, there’s a plethora of different investment options available to individuals. Equities, bonds, life insurance, bank FDs, National Pension System, and Public Provident Fund are a few of the most popular options. Each of these investment options deliver different returns and come with its own level of risk.

Therefore, knowing the different investment options and the kind of financial goals that they’re perfect for is key. It can help you choose the right option and make your investment journey a whole lot smoother. For instance, if retirement is your goal, then investing in the National Pension System and Public Provident Funds may be a good option.

3. Maximise your savings and investment  

Once you’ve identified the investment option that’s right for you, the next step is to set out towards maximisation of your savings and investment. And the best way to do that would be through a budget.

Drawing up an extensive budget allows you to account for all your expenses. This can then help you identify and eliminate frivolous and unnecessary spends. And once you’ve done that, you can easily maximise your investment. The more money that you invest, the faster you get to satisfy your financial and retirement goals.

4. Set up an emergency fund

An emergency fund is basically a corpus that’s separate from your savings and investments. The funds that are available in this corpus shouldn’t be used for anything other than financial emergencies like a medical issue or a major home repair due to an accident. Setting up such a fund is one of the few important steps that many individuals tend to skip.

Having an emergency fund can help you in a multitude of different ways. Here are some of the benefits of this fund.

● It eliminates the need to dip into your hard-earned savings or investments for any emergencies.
● It keeps your wealth creation journey intact.
● You can deal with emergencies in a smooth and efficient manner, which is particularly important during your post-retirement life.

Conclusion

With this, you must now be aware of how to approach personal investing with a focus on your post-retirement life. And irrespective of the kind of investment option that you decide to invest in, it is always a good idea to also start a bank FD. You can easily open an FD on Bajaj MARKETS and enjoy attractive interest rates up to 7.45% per annum.

Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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