If I asked you which generation has the best attitude towards retirement, what would you say?
Surprise! It’s Millennial.
As a millennial, you have the chance of relishing the retirement of your dreams. Though you still have the saving footraces of older generations, like paying debts and the rising cost of living, you have a big plus point, that is you have time.
If you’re a Millennial and wish to harness your precious time towards building wealth then you should get started with these five steps:
Step 1: Know the exact reason behind wealth building
Saving for the future isn’t considered as a priority when you’re young. You want to be responsible, but you also want to enjoy your life. In order to stay motivated for the long term, you should know the exact reason why you wish to build a huge corpus for your retirement. Maybe you want to fulfill some of your dreams after retirement like travelling the world without worrying about money or it could simply be an early retirement.
Step 2: Start saving NOW
Since you are at the beginning of your career, the idea of being financially secure enough to quit your job may seem impossible but this idea will seem possible during your retirement phase. Don’t let debts and immediate expenses hold you back. If you start making your financial plans now, it takes lesser effort than you think. The earlier you start, the easier it is to reach the goal.
Step 3: Switch your savings gears
As a millennial, it’s likely that you’re already good at saving. Since you’re already stretching your savings muscles, setting some money aside for your future just means exchanging gears. Achieving your retirement goal requires disciplined and a long-term approach towards investment. You may consider the new age ULIP that will not only help you invest systematically but also provide you with additional benefits like tax savings, premium boosters and a life cover.
Step 4: If you change jobs, roll over your retirement
You may have started contributing to a workplace retirement account when you got your first job. If you’re not careful while switching your jobs than your retirement savings will be in mess and that costs you thousands of rupees. It doesn’t seem like a good deal unless you want your job-hopping to keep you from wealth building, roll over your workplace retirement accounts with each job switch. It’s easy—just a matter of some paperwork.
Step 5: Be active in your wealth-building plan
You may be making some good decisions with your money, and you’re probably researching online to find the answers to your questions about building wealth.
An investing professional can help you with a personalized method.
- Make the most of your investment growth while taking your risk tolerance into account.
- Keep your portfolio balanced by estimating your fund performance
What’s coming in your way? You’ve got a million-dollar opportunity waiting for you. It’s time to get started!