In today's time, everyone is preparing to secure their future. For this, people start financial planning from the time of job itself so that by the time of retirement they have a good amount of money and they can live that life comfortably. But financial planning should also be done with complete calculation because the way inflation is increasing, a small mistake can spoil all your hard work and inflation can eat up all your savings.

Financial experts believe that in today's time, you need to invest in those places where you get the benefit of compounding interest, as well as the returns are inflation-beating. The great scientist Albert Einstein said about compounding that 'Compounding is the eighth wonder of the world. Those who understand it, earn it, and those who do not understand, pay it.' Apart from this, you should also understand some things related to financial planning well so that there is no scope for mistake.

Invest 20 percent

Big economists say that whatever you earn, save at least 20 percent of it and invest it in any case. If you earn Rs 10,000, then invest Rs 2,000. After this, as the income increases, keep increasing the investment amount at the rate of 20 percent. The sooner you start investing by understanding this rule of investment, the more money you will accumulate for the future.

Diversify your portfolio

Do not invest your money in just one scheme. Include various types of schemes in your financial portfolio according to the time. Choose short term and long term investment schemes according to your needs and then invest. If you want, you can also take expert advice in this matter.

Take only as much risk as you can bear

Warren Buffet has said that you should take only as much risk as you can easily bear. Therefore, do not do anything by looking at others. In such a case, you can get into trouble. Save according to your income and invest in different schemes according to your goals. Keep in mind that for long term investment, it is not necessary to be a very aggressive investor, but disciplined investment is necessary.

Do include emergency fund and insurance

Do not consider emergency fund and insurance as useless. Emergency fund should be equal to your six months salary. If you keep emergency fund with you in advance, then in difficult times you will not have to use the fund being prepared for your future. Apart from this, schemes like health insurance, life insurance will provide security cover to you and your family.