How to retire in your 30s?
Hello doston, Angel one ke iss financial planning special podcast mein aapka swagat hai.
Doston, hum mein se kaun apne 30s mein retire nahi karna chahta? Kaun yahan Goa ke kisi beach pe, thandi hawa mein chill karte hue sunset nahi dekhna chahega?
Par, par, par and this is a big par….uske liye mehnat aur samajhdari dono chahiye. Mehnat lagegi aapke office mein in your 20s and samajhdari zaroori hai aapke investments mein taki aapka paisa aapke jitni ya aapse zyaada mehnat karein auur aapko de acche returns in a span of 5-7 years.
Yeh kaise karna hai? Without further ado, let’s dive in.
Doston, the first and foremost thing you have to remember is that saving and investing from an early age is extremely important. You cannot put off saving for tomorrow. Saving has to begin as soon as possible. If you are in your 20s, there are lesser financial burdens on you. Yeh sab aap ke upar hai ke aap saved funds ka kya karenge- inhe save karenge ya YOLO ke naam pe saare kharch kar denge?
If you want to retire by your 30s, you will have to become extremely serious about saving every last penny and investing it. The sooner you start investing, the longer duration your funds have to grow, and the longer the duration that your funds have to grow, the greater will be the benefit of compounding.
Let us pause for a moment here and look at the concept of compounding. What is compounding? Compounding or compound interest is basically the interest earned on interest. Compound interest ki wajah se aapka chhota investment bhi time ke saath bada ban jata hai. A small investment can fetch you great compounded returns over a period of five years.
Let us say aapka initial investment hai Rs 1 lakh and it is compounding at the rate of 10% per annum over a period of 15 years. If that happens then at the end of 15 years, you will have a base amount of Rs 4,17,725.
But to earn these kinds of returns, Yeh zaroori hai ke as an investor you keep compounding and the interest generated is reinvested.
Agar app mutual funds mein invest karte hai toh you are on a good track to ensure a good growth of your funds. Let’s say ke aap aaj ke din mein decide karte hai ke aap Rs 1,000 invest karenge in a month in a mutual fund scheme for the next 10 years. Assuming a return of 8% percent, by the end of 10 years you will have invested a corpus of Rs 1,20,000 which has delivered a profit of Rs 1,82,946.
Agar app decide karte hai ke issi funds ko aap aage auur reinvest karenge for another ten years then you returns will grow to Rs 3,94,967. The great thing about compounding in mutual funds is that your existing returns are reinvested contributing to greater returns for you.
Aur agar paar equities mein invest karna chahte hain, then make sure you do your research on the said company or companies. Abhi toh IPO season bhi chal raha tha, many people assumed fresh issue mein invest karke early move ka laabh uthaaye, but there’s more to investing than that. Stocks analysis, P and L analysis, past performances, etc, aise kaafi metrics hote hain jinke baare mein you have to think.
Aaiye ab second step pe jaate hai which is getting a health insurance for yourself and for your family. Aap mein se kuch log jo aapne 20s mein hai must be thinking ke I am at the peak of my health and I don’t need a health insurance at all.
Galat! Bilkul galat!
Aap mein se kaafi saaro ne first-hand experience kiya hoga ke Covid mein sudden hospitalization kaisa hota hai aur uske expenses kitne hote hai. I am sure hum se kaiion ko hospitalisation expenses ka shock tabhi laga hoga.
Agar aap apni savings ko sudden erosion se bachana chahte hai toh it is extremely important to have a health insurance. Without a health insurance, aapki saari savings ya uska ek bada hissa, hospitalisation mein hi kharch ho sakta hai and that will be a disastrous situation for your investments.
Additionally, apne parents ke liye bhi insurance kharidna yaad rakhein. Make sure ke unka coverage as large as possible ho kyunki aapse jyaada unko insurance ki zaroorat rahegi. Ek auur cheez, insurance ke agreement ko bahut dhyaan se padhiyega. Make sure that you understand all the exclusions and cappings in terms of room rent, consumable expenses and OPD costs restrictions. Sirf coverage amount dekh ke sign mat kariyega.
Third step is to create an emergency corpus. Doston, life is unpredictable. Covid jaisa black swan event aaya jab none of us were expecting it and it changed the script of our lives. A lot of us lost our jobs or had to get by on a lesser salary. Jin logon ka business the, unka revenue ekdum se ghat gaya and they had to get by on their savings. Meanwhile, aapke kharche kaam nahi hue. Aise hi unpredictable life situations ke liye prepared rehne bahut zaroori hai.
Time and again, financial experts keep emphasising the importance of an emergency fund. At any given point in time, your emergency corpus should have at least 12 months of your expenses in it which should include your monthly utility and grocery bills as well as rent payments, insurance premiums and loan instalments as well.
With an emergency corpus, you will never be forced to redeem your mutual funds and you can let them grow at their own pace.
Chaliye doston, aaj ke liye bas itna hi. I hope aap consistently auur disciplined manner mein save karte rahenge. Ek baat yaad rakhiyega ke stock market investing mein risk hamesha rahega and invest karne ke pehle aapna due diligenge zaroor karein auur ek financial advisor se bhi salah le.
Jaane se pehle ek auur important baat. This podcast has been made for educational purposes only and the investor must do his own research as well.
Aise aur interesting podcasts sunne ke liye humein follow karein via youtube and other social media channels. Until then goodbye and happy investing!
Investments in the securities markets are subject to market risks, read all the related documents carefully before investing.