Reasons why you need to start saving from today!

by Jay Mehta The Difference between who you are and what you wa

Money may not buy you everything, but surely, with enough money in your hands, you could control your life better. You need money mainly to accomplish your present basic lifestyle and more importantly maintain the same style in the future. Further, money helps you to achieve, beyond your physiological needs during your lifetime.

This ever-evolving world around us will keep pulling you towards things that are beyond your basic requirements. Earlier, it was just food, shelter, clothing, education, and marriage, but now these physiological needs have expanded to things such as communication requirements and vehicles. This expansion of needs has gone beyond one’s imagination today.

Therefore, it becomes important to avoid some of these impulsive expenses and save money to fulfill your necessities first and then save more to meet your dreams beyond these necessities. Financial services companies in India advise you with regards to where one can invest money so that it gives higher future returns.

We cannot predict the future precisely. We can only estimate our future needs through approximate numbers. Thus, the need to save money for the future becomes vital.

Three specific reasons why you need to save:

Emergency funds – These could be for a number of things such as the need for a new house due to natural calamity, out-of-pocket medical expenses, or sudden loss of income. You will need to apportion money for these emergencies to avoid resorting to debt to pay for what you need.

Save to at least six months of your monthly income for emergencies. This money needs to be liquid, do not invest from savings made for this purpose. Hold these savings in liquid state and do not lock them up against any liability like HDFC loan against property or in term deposits.

Post-retirement needs - You will retire someday. At that point, you may need savings/investments to replace your monthly income. Further, you would need more money to provide for expenses longer than before, with an increase in average life expectancy and mismatch in the value of money now and in future due to soaring inflation in things we buy and services we use makes it imperative for you to save as high as possible.

Goals – Life is not just about accomplishing your basic requirements, it is also about achieving your lifetime dreams along with those of your loved ones.

For starters, you need to save at least 30-35% of your monthly income or whatever minimum possible.

Systematic savings will not only secure you better against unforeseen events. They will also help you achieve your goals beyond your fixed necessities.

Happy Saving!

Regards