Very few people think about saving for retirement in their 20s. This can be due to pre-existing student loans which they have to pay off, or they are simply not earning enough. However, by your 30s, saving should not be an afterthought, but a priority.

Aside from life insurance, you need a little more security for when you are no longer able to work. Moreover, a life insurance will only financially protect your loved ones in the event of your demise. The key is to start saving for retirement early on, so you can have more money to spend post-retirement on things such as medical and household bills. Here are a few tips to help you get started on your retirement plan while you are in your 30s.

Use Compounding Interest to Your Advantage

In a retirement plan with compounding interest, the interest rate keeps increasing exponentially. So the longer you keep funding the plan, the more money you accumulate by the end of the tenure. Over the long run, compound interest will significantly boost your overall retirement fund because it will offer more growth as compared to a simple interest rate plan.

Start Automating Your Savings

When it comes to starting a retirement fund, saving money is everything. Making a habit of saving money will not only help for your retirement, but it will also help in paying your life insurance premiums and other such payments or investments. Investing money in a provident fund is an easy way of automating your savings. However, if you do not have a provident fund, it helps to automate your savings by directing a fixed amount to your retirement fund each month. As your salary starts to grow, aim to add a little more to your retirement fund each year.

Decide What You Want to Pay for First

Many people assume that you have to clear your remaining debts before you can start saving; this is not true. It is simply a matter of deciding which payments to make first. Your other expenses can include debts on a car, a house, a credit card debt, or life insurance premiums. Compare the interest rate on your debt to what you could earn from a retirement fund. If you have a better return on the retirement fund, then your choice is clear.

Your twenties are a tumultuous time. You are out of college, you probably have your first job, and you are finally coming to terms with the fact that you need to manage your money. While you are going to be tempted to spend excessively, it is going to cost you in the long run. Saving money in your 20s might seem like an uphill task, but it is doable and simple. All you need is an individual savings account, and a lot of willpower. Here are a couple of simple tips to save more in your twenties:

1. Make Saving a Habit

Even if it is saving a small amount every week or month, it is integral to establish saving as a habit when you have just started earning. Start with small amounts that will not take too much out of your spending money, and soon you will see a remarkable growth in your savings. Once you get into the habit of saving, you can increase the amount to be saved. You may also find yourself motivated to find ways to curtail unnecessary expenses. The easiest way to do this is to set up an individual savings account and add money to it right after you receive your paycheck every month.

1. Create and Stick to a Budget

Once you sit down and analyse where you are spending most of your money, you will come to realise that most of it can be saved. It may seem hard initially, but you are going to have to steel yourself and make sure you stick to your budget for the month. A good rule of thumb is to stick to the 40-30-20-10 principle, which refers to allocating 40% of your paycheck to monthly expenses like rent and other bills, 30% on food and transport, 20% for the amount that is to be put in your individual savings account, and 10% for extra expenditure.

1. Invest, Invest, Invest

When you manage to set aside a monthly savings account, you can start investing some extra money that you have. A few high-yield and low-risk options include investing into an individual savings account with a high interest rate, Systematic Investment Portfolios, or SIPs, mutual funds, and many other options which can help put your money to work.

By following the above suggestions, you should be well on your way to saving a substantial amount of money for your future. Open your individual savings account with IndusInd Bank today.

Have you been thinking of buying a two-wheeler? At IndusInd Bank, it is a simple process to get a loan for a two-wheeler of any brand, with attractive interest rates and easy repayment options as additional benefits.

Keeping these things in mind, get a fast and easy loan in no time:

1. An easy online application process
2. Instant approval
3. Flexible repayment options
4. Quick loan processing
5. Simple documentation
6. Attractive interest rates for all new and existing IndusInd Bank account holders

How to Apply:

1. A two-wheeler loan can be applied for in minutes. Even if you are not an IndusInd Bank account holder, you will not face any difficulties.
2. The loan offer is subject to field verification and submission of KYC documents by the customer.
3. A bank loan officer would contact you shortly after the submission of your documents.

What is the Eligibility?

For Salaried Customers:

1. Minimum age – 21 years (at the time of applying for the loan) and maximum age – 60 years (at the time of loan maturity)
2. Minimum gross income of INR 10,000 per month
3. A minimum of 1 year of total experience. Completion of a minimum of 6 months’ service in current employment at the time of application

For Self-Employed Customers:

1. Minimum age – 21 years (at the time of applying for the loan) and maximum age – 60 years (at the time of loan maturity)
2. A minimum net profit of INR 1,00,000 per annum
3. A minimum of 3 years in business and 1 year in the same business

What Documents Does One Need?

For Salaried Customers:

1. Borrower Identity – 1 Passport size photo
2. Proof of Identity – Photocopy of Driving License/ Passport/ Voters ID / Aadhaar Card/ PAN Card
3. Proof of Residence – Photocopy of any one of Driving License/ Passport / Voters ID /Aadhaar Card
4. Bank statement of the last 3 months
5. Income Proof – The previous month’s salary slip with regular salary credits seen in the bank statement

For Self-Employed Customers:

1. Borrower Identity – 1 Passport size photo
2. Proof of Identity – Photocopy of Driving License/ Passport/ Voters ID / Aadhaar Card/ PAN Card
3. Proof of Residence – Photocopy of any one of Driving License/ Passport / Voters ID /Aadhaar Card
4. Bank statements of the last 3 months
5. Income tax returns of the immediate preceding financial year along with the computation of income for the assessment year

While applying for your two-wheeler loan from IndusInd Bank, a hassle-free and positive experience is guaranteed.