Want to retire rich? Avoid these four financial mistakes when you are young
emergency fund. Unexpected expenses can arise when you least expect them, and without financial backup, you may end up resorting to high-interest loans or depleting your savings. “Aim to keep between 3 to 6 months' worth of income in an easily accessible account to secure yourself during uncertainties," advises Ashish Aggarwal, Director at Acube Ventures.
Waiting too long to start saving for retirement can significantly impact your future financial security. Start contributing to retirement accounts as early as possible to take advantage of compounding returns. “The magic of compound interest works helping you in case you start saving at a young age when interest is on your side.
At times, something as small as some modest addition to your retirement account can become significant when compounded in the long horizon. Don't forget that starting with whatever amount you can afford for your initial contribution and then moving on to increasing it up to whatever you can afford as your through time-accumulated income is simple," said Ashish Aggarwal, Director, Acube Ventures. Failing to create a budget can lead to overspending and difficulty managing finances.
Establishing a budget helps prioritise spending and ensures that you save enough for future goals. “One of the advantages in making 'savings' as part of 'living below your means' when you're in your 20s is that it can serve as a good foundation for long-term financial stability and wealth accumulation," said Ashish Aggarwal. Siddharth Agrawal, Chief Business Officer (Autos) at OLX India, emphasizes the importance of smart spending for securing your financial future.
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