When should you start saving for retirement?

There’s no present like time.

This reversal of the famous “no time like the present” is a reminder that time is precious- something that is not returned once it’s spent. Therefore, getting things done in right time holds the utmost importance in a human life- starting from taking a personal decision to making career choices to saving for retirement.

The time to start investing is now

Money, Time and Compound Interest are the three important things to consider when it comes to building wealth. The most critical element of the investing formula is time. With more time, more compound interest can grow. That’s why, investment decision, should be made at earliest, regardless of the investment amount, market condition and or job status.

Even after both saving the same amount monthly and at the same rate, Fahim ends up saving more but getting less, just because he started saving late.

Therefore, the key is to start investing as soon as possible.

What to do to start saving for retirement?

  • Get an emergency fund: Start with BDT 1,000 in the bank and don’t touch it unless it is an extremeemergency.
  • Get rid of debt (Be extra cautious of Credit Card!): Debt is retirement quicksand. It is not possible to charge forward with investing being over burdened with debt payments. Also, credit card payment should be made at due time to avoid the high interest rate in late payment.
  • Get on a budget: Without a budget, you will always end up eating your future investment.