Keep a track of your finances: It is essential that you keep a track of your periodic expenditures. A free app can help you do this effectively. When you track your expenses, you realize the exact spend on each service. This aids in curtailing expenditure wherever you need to and simplifies the overall money-saving process thus helping you retire early.
Only spend the amount you can afford to: Keep your cost of living in check with your earnings. If you spend more than you can afford, you’ll ultimately be debt-ridden. Instead, be patient. Over time, your pay will increase meaning the standard of your lifestyle will also improve. Therefore, spend only if your situation permits you to do so!
Set short-term financial objectives: Instead of focusing on long-term goals, aim to achieve short-term ones such as wiping off credit card debt or investing in a SIP for an expense in the near future. Setting short-term goals keep you financially stable which in turn helps you achieve long-term goals such as having substantial savings when you eventually retire.
Educate yourself financially: Financial education among the youth in the country is on the rise and for good reason. The more financially aware you are, the better decisions you’ll make when investing your hard-earned money. When you are financially literate, you don't just save money but rather make it grow!
Take calculated risks: Taking calculated risks when investing is essential when you’re young. Not only do you learn valuable lessons along the way but also have the ability to quickly recover from the mistakes made in the market. One such example of a calculated risk could be investing in a high-risk high-return stock in the share market.
Retiring early is not a far-fetched dream anymore. With the steps mentioned above, any working person in their 20s can plan their investments and secure a healthy financial future!
Archit Gupta is Founder & CEO Clear
