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Retirement Planning: Am I Too Young To Plan? | RUMIT S1

November 20, 2019

This cost of living thing, it’s kind of getting to me I have zero savings. And before you say anything, I really am trying Though at this rate, I think I’ll be pretty broke at 60, but I’m still young I shouldn’t be freaking out, right? *literally freaking out* How do I freak you out? Imagine this. Imagine living on half your salary ready Imagine having to continue working even during the old days Not having enough retirement savings simply means you’re probably gonna end up doing odd jobs and etc And with the kind of little income that you might have, you’re going to be able to only afford a certain kind of lifestyle. Imagine downgrading the current lifestyle you’re at right now to something that is a little far. Is that something that you think you’re going to be able to manage But the whole idea is you are off active employment and hence, no active income. Other perception that there’s EPF that’s going to be enough. It might be enough for some In quite a number of cases, it’s not. Now, of course, you need to have a little bit of fun as well. Yes Not having that entertainment expenses, you’re bound to go and touch that emergency reserve that you have. So having your cash flow established on a realistic manner that’s where you start. everything should fall in place. Thing that probably gets people to think would be when they get to know of how much do they need when they hit the diamond age. Hopefully numbers freak people out because of the whole concept of inflation. I mean, it’s no longer concept. It’s reality, right? Inflation a sustained increase in price level of goods and services in an economy over a period of time. A bowl of mee used to cost me only you know, fifty cents at most and today, it costs what at least nine ringgit From one year to another year you might not feel it so much But over a span of twenty years Yea we’re going to be singing the same story of you know a bowl of mee as well. On that perspective, 1 million ringgit is really not a lot. It’s not luxury. It’s just about painting in your current lifestyle. but my question would be back to you. How many nine years cycles do you have before you turn the age of 55 or 60? *alarm clock ringing* 3 times at most yeah So it’s really not much time staring early will benefit you, in terms of starting small. The sooner you build up your reserves, the sooner you can get into actual form of investments. Be it the younger generation be the ones in their 30s and 40s To a certain extent, it’s something that’s still far away. Having that awareness and keeping it on track is important because if you do not keep yourself in check in your 20s, the 30s are basically going to be all about repaying debts and etc If you have planned well, it shouldn’t be a period of you know, calculating. Is this going to be enough? You get to do what you’ve always been planning to do This is a phase where you get to live it a little bit more with time in hand To put it in simple, there will not be a period of uncertainty.

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