A person
who lands his first job is tremendously excited about finally becoming
financially independent. With the monthly salary comes the responsibility of
fending for oneself and one’s family. From the time a person draws his first
income to the time he retires, he is responsible and accountable for his loved
one’s dreams. He realizes that none of his own or his family’s ambitions can be
released unless a strict budgeting and savings
plan is put in place.
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| savings plan |
Our
parents often urge us to save small sums of money, even as they give us our
weekly pocket money when we are very young. The savings habit is deeply
ingrained in our culture – we revere thrift and frown upon ostentatious
spending. Though it seems like unnecessary advice at the time, most parents
urge their young children to set aside a sum of money from their income for
their future. It is sage advice that must be taken to heart – and the savings
habit must be inculcated as soon as one starts working.
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| savings plans in India |
Not
adopting a regular savings habit from a young age can have tremendous
implications for the future. For one thing, it is a difficult habit to
inculcate. It takes perseverance to save money every month in the face of
mounting expenses and the needs of a growing family. Secondly, it is even
harder to resist the temptation to divert a chunk of savings towards other
requirements when the savings corpus becomes a sizeable one. The best way out
is to park one’s funds in an investment/insurance/savings plan that will
not allow one to periodically withdraw the funds for other uses. At the
maturity of the plan, the person receives a large sum of money which he can
either reinvest in another plan, or use at the time of maturity.
There
are many excellent savings plans in India, which people are taking
advantage of to map their financial future. One may set short term or long term
financial goals, but only by dint of regular savings can one bring those goals
to fruition. In both scenarios, the plan holder gains by regular savings for a
certain tenure, and gets a large corpus of money on maturity of the plan.
A
person’s goals for the future may encompass short term goals (taking a foreign
vacation every two years, for example) or long term plans (such as buying a
house by age 35). Either way, a person may invest money regularly in savings plans to build a healthy corpus for
the future. Having this fund of money helps keep one’s financial goals on
track, and the policy holder need not divert money from his regular expense
fund to spend for large expenses such as the ones mentioned above.
Savings
plans in India
also offer a death benefit, wherein the plan holder’s family may benefit from
the corpus in the event of the holder’s unfortunate demise.
