Investment: Start early

We should start early in the matter of investment. Investment should start when we receive our first salary.

The process is simple. Save first to invest. If we start early, a SIP of a small amount for a long time is enough.

We can start a SIP in the mutual funds or shares. A weekly, monthly or quarterly or yearly SIP in mutual fund can be planned and a fixed amount will be debited from the bank account on a fixed date.

SIP in share is different as the price of share varies everytime and every day.

Finally, invest early to retire early.

Investment: Save first

Investment should start with our income. We have to save first from our income. We know, Income - Expense = Saving.

Here we have a problem. After considering all the expenses, saving would be the second priority. 

If we change the formula to Income - Saving = Expenses, saving becomes the first task to do after we earn salary,  wages,  bonus and other incomes. 

So separating immediately some portion of our income as saving would compel us adjust our expenses to a certain limit.  

Set a target for saving say 5% or 10% to begin with and slowly increase the saving percentage every year or as required.