Piggy Bank Principle
The general rule of thought is, the earlier an individual starts to put money aside towards saving s, the more likely this said sum will eventually become a rather attractive amount to facilitate some form of comfortable retirement plans.
For most people going into the work force today there is very little possibility of being able to enjoy some sort of pension plans as these plans are becoming more “extinct”. Such pension plan facilities are no longer a requirement or a compulsory addition to an individual’s salary deductions. Therefore without such allowances in place for retirement the individual would be wise to start a saving plan to accommodate the retirement phase of his or her life. Learning to lock in a certain amount as soon as possible towards a savings plan will allow the individual to plan accordingly, thus ensuring this said sum is systematically allotted. Making this a habit that comes naturally will help to make the entire saving exercise both easy and accepted. It will also allow the individual to work round other financial commitments to ensure the savings contributions are not effected in any way. Besides this the individual will learn to be disciplined and thus create a comfortable spending habit from a very early on age. The percentage of the savings should also be increased according to the job advancements made.
This would ensure the savings amount becomes healthier which in turn would ensure a more comfortable retirement phase. Investing in suitable savings plans will also allow the individual to make tax relief claims which should work as an incentive to save even more or provide the funds to invest even more towards a suitable retirement plan.
