Time is money; start today
The most important key to retiring rich is to start saving as early as possible. We are either tempted for a major purchase or remain cash strapped and anticipate that we will contribute in future. But it doesn’t work that ways.
Don’t cash out of your retirement when you change jobs.
If you are anything like the average Indian working class, the odds are fairly substantial you are going to change jobs at some point during your career. When this occurs, the most foolish thing you could possibly do is to cash out of your retirement plan. Instead, roll over the proceeds into PPF. In addition to avoiding the significant tax penalties, you will be able to keep your money working for you tax-free. Given enough time (you already saw the power a few decades can have on seemingly small amounts of money), this literally could mean the difference between living a good retired life and having to take a job at the Golden Arches to supplement your income.
Eliminate the Debt
It’s crucial to ensure that when your retirement date arrives you have no debt of any kind (this certainly includes your mortgage). After you retire your employment income will be 0 so to protect yourself from unforeseen events (ie- rapid rise in interest rates)
Expand the Pie
Don't just cut expenses - find a way to make more money! By taking on side work or turning a hobby into a business enterprise, you can create additional streams of income to help fund your retirement. In many cases, this is an excellent alternative to cutting costs because it allows you to maintain your current standard of living while providing for your future.
Source : Multiple sources
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