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Retirement Planning: Is Less Salary? Still a big retirement fund will be made, just keep these things in mind – How to Build Big Retirement Fund with low salary 8 simple saving tips

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Retirment Planning: Even if your salary is low, it is not impossible to make a fat fund for retirement. There is a need only of correct planning, time investment and a little financial discipline. If people with low income also start early, then they can take advantage of compounding. Small steps mentioned here can bring a big difference in a long time.

1. Start investing early
The sooner you start investing, the more benefit from compounding. Even if the amount is low in the beginning, that fund can become big with time. Preparation for retirement funds is most beneficial at the beginning of the job.

2. Save a fixed amount every month
You can also keep a small fixed amount for saving in low salary. The aim is to make a habit, not to add a large amount in the beginning. Also start with ₹ 500, but maintain regularity.

3. Focus on EPF and PPF
If you are employed, keep contributing to the EPF and do not tease it in the middle. Apart from this, PPF is also a great option for long -term safe investment. Both of these schemes give stable returns with tax savings.

4. Make discipline from SIP
With SIP (Systematic Investment Plan), you can invest small amount in mutual funds every month. This market balances risk in long periods and makes fund growth easier. This is the most disciplined method of investment for low income with low income.

5. Insert extra income into saving
If you get an annual bonus or side income, save it instead of spending it. This can suddenly add a large amount to the retirement fund. Apply such an amount in the long term lock-in scheme.

6. Reduce wasteful expenses
It is very important to deduct unnecessary expenses in low salary and make budget for every month. The more you can save, the more you will be able to invest. You can improve your financial planning with budgeting.

7. Don’t forget to take insurance
Taking health and term insurance is necessary for financial security. Because medical emergency or any untoward consciousness can put both your savings and investment in danger. Basic policy with low premium can also prove to be very helpful.

8. Keep reviewing from time to time
Review your investment and financial targets every year. If your income has increased, then increase the investment amount. Review will help you understand if you are going in the right direction.

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