Save today for better family future tomorrow

In life, we all aspire to get joy and ultimate bliss by earning plenty of money, good house, luxurious vehicles along with lavish lifestyle. But you can achieve this only if you have some sort of wealth accumulation over the years. In today’s time it is termed as “saving plan”. During olden days our ancestors used to save each penny so that when there is any financial emergency it could be utilized for it. Today, we need it for lavishness as well as for our secured future. Time is uncertain and we cannot predict future. And if you have family responsibility it is important you build some sort of wealth corpus so that if anything unfortunate happens to you it will take care of financial needs of your family. Your family continue to live the same lifestyle what they are currently living with you. Therefore, saving plans are one of the vital resources for planning your family’s financial future.

While markets have introduced various forms of insurance policies, bonds and debentures, mutual funds, market-linked plans, gold securities etc. saving insurance plans offered by insurance companies are slowly catching attention of the Indian consumers.

Savings plan are market-linked plans offered by companies with dedicated amount of insurance cover on your life and additionally helps you grow and develop a body of wealth through market linked investments. 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’s 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. Savings Plans are most suitable to fulfill requirements such as health, marriage and educational expenses.

The article gives few tips to create best saving plans that will let you control your financial future:

Identify your saving goals

Make a list of all your goals such as buying house or car, going on vacation, child education & marriage funds, retirement etc.  After this is narrowed down the ones that are on the top priority list needs urgent attention. Remember, the more savings goals you have, the more comprehensive savings plan will help you stay on track to pursue them. Segregate the goals on the basis of long term and short term.

Determine the costs & goal type

Once you narrow down, then start identifying and analyzing the costs involved in them to pursue these goals. Those who like buying car or go for foreign vacation quite often can be categorized as short-term goals.  Goals like retirement planning or child education can be termed as long-term goals. Accordingly you need to set a premium for savings plan.

Set a target date

Every goal has to have pre-advance date to be achieved. For goals that are year or two away pool your money in secure funds such as savings account or fixed deposit that will give safe returns. For long-term you can work upon equity stocks so that even if there are any losses driven you can bear them, cover up the losses in long time span and earn good returns in the end.

Financial Knowledge

Since these plans are based on market linked funds they need sound knowledge on market volatility, current situations and future projections. You can pool your money in equity, debt and balanced funds. If you’re not so market savvy person take an expert advice that will help you swim through the market storms.

Adjust needs

Compare monthly target of your saving plans with the help of savings spreadsheet. A budget planner can help you find ways to trim you’re spending so that you have more money to plan for each month. Adjust goals by either shredding the less important ones or postponing them ahead. Savings Spreadsheet makes it easy to revise your targets time-to-time until you find some finance resources to invest for meeting them in near future.