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Showing posts from February, 2016

Personal Finance for Retirement Plan

Personal Finance
Finance seems to scare many of us and we always struggle with personal finance. Simply, personal finance relates to our personal income, expenses & savings.

Time is MONEY! Theoretically, there is time value of money.

Say, you're now 30 years of age and you have decided to save 1,000 per month in a pension scheme giving 10% annual return. You continue to save till 40 years' of age and stop saving. But you kept the money in bank giving 10% annual return for next 10 years.

On other hand, your friend, wants to enjoy life to the fullest. So he doesn’t bother to save when he is 30. Instead, he has planned to save 2,000 per month when he will reach 40 (double than your saving amount) in similar pension scheme giving 10% annual return for 10 years.

So, whose savings at 50 years of age would be higher? As your friend saved double amount, you might think your friend will have more money at 50 years of age.

Your money would be higher than your friend’s by 30.8%


Let’s sta…