ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Why you should begin your Financial Planning at an early age

Updated on February 4, 2013

The age between 20 and 45 may be the most productive period in anyone's life. But, those who belong to these age groups may have a tendency to squander money because they may want to enjoy life. They think that their right to seek enjoyment is non-negotiable. But, when they grow up and reach a certain age and when responsibilities pile up, they may wonder how they will be able to fulfill these responsibilities. So, it is better if young people give a serious thought about their financial planning as early as possible.

If you are young, you can start your financial planning in your twenties.This may positively impact your later life. It may benefit your family members also. It may make your retirement period smooth, though that period is a distant future.

Owning your Home

As you delay your financial planning, the benefits that may be available to you may proportionately come down also. You may decide to buy a home for which you may need money for down-payment. If you delay the process of financial planning, you may either be forced to raise a loan or settle down for a smaller home.

Children's higher Education


Similarly, if you get married and have children, you may have to spend for their higher education. Education has become quite expensive and especially, higher education may cost a fortune. By starting to save at an early age, you will have more number of years to save and you will have a substantial amount at your disposal for providing the best possible education to your children.

Retirement Period


There are people who think of their retirement only at their age of 50. If they begin to save at the age of 50, they may not have sufficient funds with them during their retirement period. They may be forced to depend upon others. Nothing can be more painful than this. Further, when you attain your retirement age, you may not have the physical strength to move around and earn. Unless you are highly motivated, you may not feel like working hard for earning and living an independent life. If you want to lead a comfortable life during your retirement period, you must begin your savings at an early age.

You have several retirement plans available and you must study them carefully to choose the best ones that may suit you. If you invest in them consistently, your life during your retirement period will be smooth.

Investing in Life Insurance

Almost everyone buys life insurance. But, you should check if you are insured adequately. According to experts, your insured amount should help your family to lead a normal and comfortable life for about 7 to 10 years, even in your absence. Another group of experts say that your total life insurance should be seven times of your current earnings. If you are currently not insured to this extent, you should immediately take steps to fill this gap.


Comments

    0 of 8192 characters used
    Post Comment

    • dreamdamodar profile imageAUTHOR

      Raman Kuppuswamy 

      5 years ago from Chennai, India

      Young people are never barred from enjoying their lives. But, at the same time, they should think about their future and start saving as early as possible.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)