Why would you need a financial guide? Do you think you are saving for the next trip or your future? It’s not an irrational assumption that one needs to save not only for short-term goals but long-term goals as well. As a beginner, you might not be as prudent or forward-looking. Many families and new professionals are hand-to-mouth when it comes to saving money. Being fresh in the job market, with student debt as a liability puts pressure on them. As a result, many of you might postpone saving for the future and just rely on luck to accumulate funds for the rainy days! Contrary to the belief most beginners have – it’s easy and necessary to save money for the future. Before sporadically deciding to save money, you should understand why you must save!
Reason 1: It will help you in emergencies
Life is dynamic, and anything can happen at any time – as is evident from the recent pandemic. Hundreds of people lost their jobs or had to admit a loved one to a hospital. The added stress combined with no steady stream of income can spiral you out of control. So, savings helps in such cases of emergencies. Put aside a part of your pocket money when you are a student or part of your salary if you are a new professional. Aim to set aside 1 year’s worth of income away in emergency funds.
Reason 2: You will not earn forever
It’s called retirement! Many youngsters rely on their parents for solving life’s issues. Let the financial issues be not one of them! You will not keep getting your salary in your account forever. You will eventually retire when you are 65! So, if you don’t have a plan yet, start NOW!Open a savings account onlinethat best matches your needs. Ensure that you choose a bank that offers the highest interest rate. For instance, IndusInd Bank offers one of the highest interest rates on savings accounts up to 6%. So, if you are new to the financial world, start parking your funds in a high-yield account and then plan on investing a part of it or put them into a fixed deposit to get a steady cash flow even after you retire.
Reason 3: Feel the progress
When you start from ‘ZERO’ and after putting away money in your savings account for 5 years or 10 years, you see the balance swelling up, and filling you with pride. The whole point is that you need to see yourself stress-free and be financially independent to the point that inflation, rise in school fees of your children, once-a-year luxury trip, etc. – should not break your bank! The idea is not just to accumulate wealth in a savings account, but to invest in SIPs or FDs or EPF/PPF to see your wealth grow to increase your NET WORTH.
A lot of events will come into your life
- Buying a house
- Buying a car
- Recurring school fees
- Vacations
- Home Renovation
- Medical expenses
and other small events which will needmoney! You don’t want to get into a debt trap, do you? If you don’t have savings to tap into, what would you do? Take loans?
Start your wealth creation journey by selecting a well-known bank and applying for a savings account first. Wait for a few months and then start investing to see your money grow in the long run!
