Why Your 20s Hold the Key to a Stress-Free Retirement

Twenties are not just the time to experiment, explore and make mistakes. Amid the chaos of 'figuring-it-out', there lies an opportunity: a chance to start planning for retirement. It sounds a bit odd, as 20-year-olds are planning for retirement, but it is smart. While it seems irrelevant when you are barely through your 20s, the math behind this says otherwise. Starting early isn't being boring or walking on eggshells; it's about being smart with time, which is your most valuable asset.

When you start saving at 25 instead of 35, you get the leverage of ten years of contributions and the power of compounding. Compound interest is like a quiet multiplier, turning modest wealth into significant wealth. A person investing Rs 5,000 a month from the age of 25 could easily outnumber someone who invested Rs 10,000 at the age of 35 for every month. The earlier start creates a snowball effect that increases over decades.

Planning earlier also gives you flexibility, which is something money can't buy you later in life. You can take calculated risks with investments and adjust your strategy based on life changes. You are also safeguarded from the uncertainty of the market because you have something cushioning you. More importantly, the earlier you start, the more discipline you build in life about money. It shifts your focus from short-term consumption to long-term security. You learn to focus on saving and make informed choices instead of reactive ones.

The myth that retirement is about old age is absurd, retirement is all about freedom. Freedom of time, expression and financial, of course. Starting early means that freedom arrives decades sooner, while your 20s seem like a blur of career shifts, up and downs and exploration, there lies a foundation of financial freedom in your choice. In essence, your 20s are not just the start of your career, they're the start of your financial stability.