Have you seen the video of Vinod Kambli struggling to walk? It has left many cricket fans in shock. 

Source: The Economic Times

For non-cricket fans, Vinod Kambli was a former Indian cricketer who has played 100 ODIs and 17 tests. Vinod Kambli is a close friend of Sachin Tendulkar and some former cricketers have even said that he was better than him. This video has left many fans in shock due to the deteriorating health of this veteran cricketer.

Not only his health but he is facing a financial crisis as well. Reportedly, after retiring he opened a cricket academy worked as a coach collaborated with many brands and appeared on various podcasts. He was doing well until Covid-19, but once the pandemic hit he lost his job and his earnings stopped. 

In an interview with Midday he said he is surviving on a monthly pension of Rs. 30,000 from BCCI and is in dire need of work. 

Now, why am I telling you about Vinod Kambli's struggle? Because time changes quickly it never waits for anyone. 

Suppose you plan and do things according to time then well and good. Or else it may leave you behind just like Vinod Kambli. It is a classic example of why planning your financials is important.

But most people avoid planning their retirement and live in the belief of YOLO (you live only once) or let me enjoy today will see what happens tomorrow.

It is a huge mistake because you never know what tomorrow will bring. So, you should enjoy your present but be prepared for the future. You can prepare for your future by following a simple 50-30-20 rule of budget.

It says to set aside 50% of your income for expenses 30% for needs and 20% for savings and investing. Say you are earning Rs. 25,000 per month then set aside Rs. 5000 for investment.

But ensure you have set aside an emergency fund and have health and life insurance before you invest your money.

Read: How should I invest Rs. 10,000 per month in India?

This painful story of Vinod Kambli also teaches us why planning for retirement is so crucial. It doesn’t need to be complicated, we just need to find some numbers and put them into a calculator and it will tell you the magical number or your retirement corpus that you need to retire comfortably.

Let’s say you are 25 and want to retire at 60 your life expectancy is around 80. It means you will need a monthly income (pension) after retiring for 20 years to manage your expenses.

We have considered 6% inflation in our example. Similarly, we have assumed a monthly expense of 25,000. 

After considering all these factors you would need Rs. 4.2 crores to retire comfortably. You can achieve this amount by investing just Rs. 3000 per month assuming a 15% pre-retirement and 7% post-retirement interest rate on your investment. 

Retirement planning can be as simple as that. You can try calculating your retirement amount here. 

But if you need professional assistance in managing your finances Swaraj Finpro is here for you. We have helped 5000+ people achieve their financial goals for over 20 years. 

Get in touch with us today.