Retirement is a word or a situation that causes haunting effect if not planned properly. It’s a stage when you don’t have to rush at 9:00 AM or plan your holidays well in advance to avoid any hassling situation at work. Early retirement, in India, is always considered as Voluntary retirement. Early retirement is also known as VRS, focuses on getting gratuity and other funds at a younger age. However, the time has changed a lot now people are open to talk and plan about earlier retirement. There is a life beyond office cubical and to enjoy that at a fit and fine stage people plan for early retirement. But the question is you prepared for it because when you plan for retirement you need to have a financial independence. There are so many benefits of retiring early if you have planned it correctly.
Well, there is a moment termed as FIRE means Financial Independence retire early. People in the west are in support of this moment and they plan their finance accordingly. In India also, the concept of FIRE is popularizing and people are actually seeing its benefits. The culture of the FIRE has been chosen by many professionals so that they can enjoy their instead of waiting for right time to come to cut the tie from the corporate whirlwind.
The key to plan balanced retirement is very simple but hard to manage. Normally people save 30% of their income and spend 70% living a luxurious lifestyle. However, most of the people decide to spend 30% and save 70% of their income so that they can plan their retirement earlier. When you invest more in saving during your young age instead of spending all, you take benefit of it earlier. There are many saving and investment schemes where you can invest to earn good amount of benefit in the future.
The secret to successfully retiring early is learning to live below your means. This doesn’t mean that you stop living even basic but yes spend only what is required. While most people spend a major part of their income in the weekly meals and luxury car or homes they don’t necessarily need it. So, if you wish for early retirement, you need to balance your spending.
While the idea of retiring early seems fantastic but it’s quite tough to achieve. The idea of retirement 20 years before from actual year is amazing, but you need to master on it. If you have decided to do it earlier then plan your investments accordingly so that you can save more for your future. People who are more fascinated with luxurious lifestyle won’t fit in the moment of FIRE. Because if you want to take earlier retirement you need to live like a mean in terms of spending money.
As many people are looking forward to this financial independent and early retirement plan, so they need to learn about the right instruments of investments. To live a stress-free life one need to start planning your investments. There are n numbers of schemes for saving your hard earned money. One financial instrument that needs to be on your list has to be either any of the government saving scheme or term insurance. There are so many beneficial government saving schemes like PPF account, Kisan Vikas Patra, Sukanya Samriddhi Yojana etc. These securities net will protect you and your family from all future emergencies. And, this will also give a better flourishing lifestyle after retirement.