With no finances for rainy days you’re living on the edge

Indians are very good in saving money and utilizing it for their welfare purpose. However, still many of us especially the urban elite are unable to save enough money for family’s secure finance future. This leaves a big threat of staying unprepared for what the future may hold. Any person who lives on paycheck to paycheck understands the frustration and concern of not being able to save.

It is therefore important that you keep sound financial back up in the form of savings in life. Saving is simply setting aside money for various purposes. It could be buying a car, going for vacation with children, their education expenses or clear any debt like owning house etc. This could be done by pooling your money in some sort of savings plan that will eventually help you build a corpus to fulfill your dreams and necessity of life. Today, markets offer wide scale of saving plans in the form of insurance policies, mutual funds, bonds or fixed deposit schemes etc. Experts suggest after insurance, savings is second most important element for wealth accumulation but often neglected area in personal finance.

The article gives few good reasons why you need to have some sort of saving plans in life:

To invest you need to save

To invest, your first need is to fuel in some money. And this can be done only if you have some savings in hand. Therefore, savings planning comes before investment planning. It is an important component of financial planning along with risk management, investment, tax plans, property plan or retirement plans.

Get financial Freedom

Financial freedom is all about managing your resources so well that you can utilize them as and when required to fulfill dreams or purpose. Saving plans help you achieve financial freedom if worked upon proper and streamlined measures.

Gives financial security

At times, Life keeps knocking you down. It can be sudden job loss, prolonged illness or disability, unexpected medical emergency or natural disaster can happen to anyone. These financial emergencies can destabilize your living if you don’t have proper financial back up. Thus, saving plans help you in tiding over unforeseen crisis. It provides emergency cushion and gives you piece of mind.

Plan for life major events & purchase

We all wish if we could buy new car, get home interiors done or buy new furniture, jewelry & foreign trips but all this is possible if we have some sort of savings in place. Besides, life comes across with major events like children’s education and marriage, house purchase and retirement. Saving plans will be your key to unlock the financial solutions to fulfill these desire and responsibilities.

A sensible financial lifestyle isn’t about hoarding up all money for that rainy day. Money is the tool for living and it helps us better our lives. It has to be used wisely. It’s a careful balancing act between living well today and living even better tomorrow. By having a savings plan, you can optimize your savings. Monitor them from time to time and create an evenly balanced ratio on aggressive or secure funds for better results. Talk to financial planner to pool your money well across various market linked fund for efficient results.