If someone does not have money, then it is not easy for them. No one works in old age, but it is also necessary to have money to fulfil one’s needs. In such a situation, one should plan for old age while working. This planning should be done in the right way so that no problem arises.
However, in this, it is also necessary to understand whether the money you have will be enough in the future or not. For example, if you have 1 crore rupees, will this much money fulfil all the needs throughout life? The question is also how much value will remain of this amount in the coming time. Here, you have to understand how much value your money will have in the future and invest accordingly.
Read More: Post Office RD Scheme– Interest Rate, Benefits And Account Opening Process
Read More: This Terrifying Netflix Horror Film Just Arrived On Netflix- WatchSceness Breaking the Top 10 Charts
Follow the Rule of 70
First of all, follow the Rule of 70. By this, you will be able to understand that in how much time the value of your deposited capital will be halved. However, you should know about the current inflation rate. If we divide the current inflation rate by 70, then the number that will come. From this, you can find out how many years the value of your savings to be reduced to half.
Understand this by an example- if the inflation rate is 4% and it goes up to 70%, it will be 17.5. That is, the value of savings will be reduced to half in 17.5 years. Suppose you were managing your expenses with 1 crore, then after 17.5 you will need 2 crore rupees. Actually, after 17.5 years, the value of 1 crore will be 50 lakh rupees.
Why is correct financial planning necessary?
People think that they will save a fixed amount so that life can go on, but they do not pay attention to the effect of inflation. Therefore, just saving money is not enough. You have to see how much this amount will be worth in the future. In such a situation, only the Rule of 70 can make you successful in this. This will tell you how much money you will have to save for the future.
Set the right goal
Start investing soon to meet the financial needs in old age. Make a strategy keeping in mind the inflation and conditions of the market. You should fulfil your future needs by proper planning.
To avoid financial problems in old age, start saving and investing from yyour outh. Deposit 20% of your income every month into a retirement fund. Choose options like SIP, PPF, and mutual funds. Keep the inflation rate in mind and then invest and save.