Plan well for your family’s future happiness

Life is all about getting a good education, living a successful family life, good earnings and not to forget ample of savings. It is only when you have ample savings you’ll enjoy the true essence of socializing around in the society. With changing time, our needs also change and increase. Today, books or pens have been replaced by smartphones and laptops, regular houses are getting equipped with hi-tech interiors, your kids are now going to school and colleges with technologically improved amenities. Secondly, the most important reasons for you to think about saving plans would be if at all anything unfortunate happens to you, will your family be able to live the same lifestyle what they are currently living with? Constantly increasing inflation, growing education expenses, critical illness of our parents along with various unexpected situations also makes it imperative that we pool our hard earned money in some form of saving plans.

While markets are flooded with various investment vehicles such as gold, silver, mutual funds, bonds, equities, insurance policies etc. one of the best modern day investment tool is savings insurance plan.

Why Savings insurance plans?

Saving insurance plans offer an insurance cover on your life and additionally helps you grow and develop a body of wealth through market linked investments funds such as equity, debt or balance funds. They help you save systematically and provide you different options to invest your savings in funds, on the basis of your risk appetite. The life cover promises the sum assured in case of the insured person sudden demise. These saving plans require the investors to put a section of his/her income for saving, for a set period of time. This is done via various installments – monthly, quarterly or yearly.

The article guides you with few tips to create your best saving plans.

The first thing you need is to identify and set saving goals. Make a list of all the things you wish to save for, like your dream house, a foreign vacation, car or child’s college fund, retirement etc. Once you broadly classify your goals, start narrowing them to the ones that are on the top most priority.

Taking into consideration your top most priority goals and gauge the costs incurred to each of your goals such as is it a one-time payment like vacation or future goals like owning car in next couple of years or planning for your child schooling etc.

Once the cost is figured you have to add up the inflation costs and amount of time required to fulfill your goal.  Finally divide the total cost of each of your goals along with the total tenure. This way you can forecast your monthly, quarterly or yearly premium towards saving plans. If you feel its complicated use a saving plans workbook to help figure out your monthly savings target.

For better efficiency and command on your plans talk to financial expert on investment funds, current market situations and future projections. It is advisable always pool your money in safe or debt funds for short term goals. For long term you can tend to take chance by investing money in equity stocks to produce the result over the period of time. As you get closer to reaching a goal, it's generally a good idea to transfer more of your investments to lower-risk savings products. Never set premium beyond your income source else if you’re not able to pay in future your policy might be cancelled.  Since there are market based funds you should have thorough knowledge on equities and debt funds. If you’re unable to take a call wisely, talk to financial expert. Finally, don’t get too emotional and pool your money under one particular fund or withdraw it in loss during bearish markets. Instead holdback, cover up your losses and then go for sell offs.