Savings: Key to unlock the doors of financial solutions

Abhay, my best friend, got married couple of years ago. He has two adorable kids and parents in his family. With a great job in hand and wife being an HR manager in a multinational company, 2500 sqft house in middle of the dream city Mumbai he seemed to enjoy a great life. While I enquired about his savings for a moment he was hesitant. He knew he didn’t have any because of his extraordinary lavish lifestyle and habit of splurging money to show off. This is not a one-off case. There are many people like Abhay wandering around in the country who only believe in living lavish lifestyle to match the current pace but with no financial back-up. In today’s time having a sound financial back-up is a must for every individual as it will be the most vital resource of finances for your family if anything unfortunate happens with you.

In today’s time to build financial back-up you need to work upon some sort of saving plans. The article informs you on why and how you can create the best saving plans of your life.  Saving plans are great way to help you save for a goal or learn how to be more disciplined with your money. In India, there are various ways to work upon saving plans like equities, bonds, gold, mutual funds, fixed deposits, insurance plans etc. With various online and automated premium payment options, monitoring & execution processes you can create plans with much ease sitting at home and at your comfort of sipping a cup of coffee.

While creating the best saving plans for your family’s financial security the first thing would be drawing up a budget. Identify your goals such as buying a car or house, vacation or child’s educational expenses etc. Based on priority you can segregate them on short-term and long-term. This way you will get idea to come up with an amount to invest towards in saving plans.

The next thing would be picking up a target date you want to achieve these goals. So, accordingly you need to pool your money in the saving plans of your choice. It is advisable every plan needs in-depth study on markets, movements and your call out action. Wherever you find it difficult consult a suitable financial expert who will guide you on market activities, the current position of your funds and future projections.

Today, many financial institutions offer incentives to help your plans work harder for you such as bonus interest for no withdrawals. Saving regularly is the key to building your savings balance, but finding small opportunities to save will also help you to gain momentum and keep savings climbing. Every plan is different and is based on individual income source, family members & their needs, future requirements, loans & mortgages and valuable asset in hand. However, these are few general tips to work upon the best saving plans of your choice:

Track down expenses

Jot down your outgoing expenses including phone bills, rent, electricity, restaurants trips, credit cards and everyday expenses like food and train tickets etc. This will help you to curb on unnecessary expenses and contribute towards more savings.

Income streams

Make a note of all your income streams including, wages, investments, pensions or child support payments.

Segregate expenses

Learn to segregate your essential and non-essential expenses and then cut down the unwanted.

Budgeting

Work out a budget for all your outgoing expenses and stick to it. Re-assess your budget regularly to reflect any changes to your financial situation.

Follow these simple tips and we are sure some surplus money will be left at the end. Utilize this money to yield good returns from market based funds and create the best saving plans that will help you build a financial blanket around your family.