It is always better to inculcate the habit of savings as early as possible. Saving to create wealth is not a short-term affair. It is a planned long-term activity. The early you start saving the better it is. The advantage of an early starter is you can contribute less amounts towards savings over longer period.

Scenario A

Monthly Savings	Rs.1000.00
Return	5%
Your current age	25 years
Your retirement age	60 years
You will save Rs. 11.4 lakhs at the time of retirement when you are 60 years.

Scenario B

Monthly Savings	Rs.1000.00
Return	5%
Your current age	35 years
Your retirement age	60 years
You will save Rs.6 lakhs at the time of retirement when you are 60 years.

See the difference. It is almost 100%.

If you begin to save when you are 25 years old your wealth when you retire will be Rs.11.4 lakhs. If you begin to save when you are 35 years old your wealth when you retire will be Rs.6 lakhs. As such it is always advantageous to begin saving from a young age or as early as possible. If you start your retirement savings early, you can insure yourself a comfortable standard of living during your retirement. The advantage of starting early is the monthly contributions towards this investment are very less. You can try out more options, which may be suitable to you. Use this calculator.

Every year we get a salary hike but even then we find it difficult to save a part of it because we keep increasing our expenditure also. Our needs keep popping up one after another. We make efforts to satisfy these needs and end up spending all our income. One way to increase our retirement funds is to curtail our desires. Whenever a new desire crops out, ask yourself the question whether you can live without satisfying that desire. Only buy if it is a very essential and you cannot afford to be without it.

One easy way is to treat you monthly savings as expenditure. Just like your spend for your travel, groceries, rent, etc., add the amount of savings as an expenditure. Have a standing instruction with your bank to transfer this amount every month to an investment account.

You should develop the habit of maintaining accounts and budgeting your monthly income and expenditure. These are habits, which will go a long way in helping you to ultimately save money.