Be it a working person or a businessman, sometimes the workload increases so much that it becomes very difficult to take out time for family and loved ones. In this situation, at some point or the other, everyone thinks about how long will we have to work like this. At some point, there should come a time when we can spend our lives comfortably according to our wishes. If you also think like this, then you will have to do Early Retirement Planning, so that when you retire, you have enough money to spend the rest of your life without any financial problems. But for this, it is very important to keep 5 things in mind.

The goal should be clear.

First of all, decide when you want to retire and how your lifestyle, healthcare, and all other needs and hobbies will be fulfilled after retirement. How much money will you need for that, this calculation must be in your mind. So that you can plan accordingly.

30X rule will be useful

Most experts believe that you should follow the 30X rule for retirement funds, that is, your retirement fund should be at least 30 times your current annual expenditure. For example, if you are 50 years old and your annual expenditure is Rs 9,00,000 (monthly expenditure Rs 75,000), then according to the 30X rule, you should collect a fund of Rs 9,00,000×30= Rs 2,70,00,000.

Increase your income

To collect a large fund, you will have to invest aggressively. In such a situation, you should save 50 to 70% of your income and invest it in various places. However, this is as easy to say as it is difficult to do because, in the era of inflation, it is difficult for people to save even 50 percent of their income. The way to do this is to increase your income. You can increase your income by renting out property, doing a part-time job doing some extra business, etc.

Reduce expenses
Just increasing income is not enough, to invest a large fund you will also have to limit your expenses. For this, you will have to understand the difference between need and hobby. Try to avoid credit card loans etc. to fulfill unnecessary hobbies. If possible, use public transport instead of going everywhere by car, etc. Apart from this, try to reduce your expenses in whatever way you can.

Where to invest
Where to invest is a big question. To accumulate a large fund, you will have to choose such schemes where you get high returns. By the way, in today's time, mutual funds are considered a very good scheme in terms of returns. Apart from this, there should be diversification in your portfolio. In such a situation, you can include equity, mutual funds, gold, fixed deposits, PPF real estate, etc. in your portfolio or you can take advice from a financial expert.

Make sure to buy health insurance.
Medical care is very necessary in old age, do not ignore this expense thinking it to be useless. If you do not buy health insurance at the right time, then the expenses on your health in old age can become the reason for financial problems for you.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.