Why start saving for old age in your twenties?

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When we are in the prime years of our life, we never think about retirement. We want youth to last forever, and want to have as much fun as possible while we are still young. We tell ourselves that twenties are for rejoicing and we have plenty of time to save for retirement. But, ask any person who is approaching retirement and he will tell you how time flies and that creating a sizable fund becomes more challenging if you do not begin early.

  1. Realize your goals

The sooner one commences saving money for old age, the safer ones feel down the long road. So, in case you are not able to plan it yourself, you may seek the expert advice of a financial advisor. He knows the steps you need to take to plan retirement and he’ll guide you as per your current income.

Make sure you keep realistic goals and consider the following things while setting targets:

  • Your present age
  • The age at which you wish to embrace retirement
  • Your projected and current expenses
  • All sources of income, major and minor
  • Where and how you want to live after job-life ends
  • How much money you can put aside right now on a monthly basis
  • Health coverage and health history


  1. Compound Interest will be your friend in need

If you are not familiar with the term, the process in which your capital grows exponentially because of interest building upon the principal over time is called compound interest. So, even if you start with low interest rates, towards the end the money will multiply. If you want more dramatic outcomes, invest some money in the stock market. However, you need to be careful and well-informed before buying shares.

  1. Saving early vs. saving later

If you save a little every day, you’ll never feel pressurized. When we are in our thirties most of us begin our family life. So, when we have to look after a family, our responsibilities increase. This makes it more difficult for us to save. But if you haven’t saved anything in your twenties, you will have to save a lot in your thirties and forties to ensure you have enough money to cover all expenses post-retirement.

  1. Careful investments

While you invest your hard-earned money to get high returns, you must do it carefully. Fixed deposits in the bank have minimum risks. Buying land is also a good investment. Keep the risk factors in mind when you invest in mutual funds and other volatile areas of the market. You obviously do not wish to lose all the money in the process of making it grow.


In the beginning of our career, we don’t make enough money to have savings. But, no matter how less you earn, a tiny percentage of your salary should go to your savings account. Being financially stable makes us confident and prepared for an unknown future. Moreover, if you do not wish to work after sixty but spend your days relaxingly, start saving now.