Save and Invest, Invest and Save
We all feel a sense of responsibility at some point in time. A responsibility that accompanies the excitement of a new job, a responsibility to take care of the needs of our families, a responsibility to plan our child’s future, and ultimately the responsibility to succeed in every role we play.
One needs to take these responsibilities seriously to manage finances for their future goals.
When we talk about savings, we must talk about methods of saving. How much can we save and how? A simple answer to this question is Investment. An investment not only takes care of your present needs but also ensures a better future.
However, before making any decision to invest it is important to understand the purpose of the investment, the returns you get as well as the risk associated.
The gap – How much I save v/s How much I should save?
Saving and investment go hand in hand. Before saving to invest or investing to save, it is important to know what are you saving for and how far are you from your future goals.
If the gap between how much you save and how much you need to increases, you may not be able to live your life the way you had planned to.
Confused? You know what you want, but don’t know how to get that? Well, you can use a Savings Goal calculator to know how much you need to save for your future goals.
All you need to do is enter your current savings, the amount you desire (goal), interest rate and the time you have in store. This calculation will give you a slight idea and will help you plan a strategy to achieve your future goals.
Once you know how much you need to save, the second thing is How to achieve that?
Investment- A step towards your future goals:
Nowadays, a number of investment schemes are available. Each of them is unique in its way to provide returns and is associated with different levels of risks.
Here are few of the best investment options in India, through which you can invest for your goals and start saving. Let us look at them based on your goals:
- Short term goals: If you have to meet your future goals within a couple of years, you can invest in following investment options:
- Fixed Deposit (FD): Fixed deposit investment is one of the most popular investment options. You can invest in FD through a bank or a company. A Non-Banking Finance Company (NBFC) like Bajaj Finance also offers this type of investment options. If you want a safe and secure investment with guaranteed returns, low risk and flexibility go for a fixed deposit investment.
- Debt schemes: These are the schemes provided under mutual fund investment schemes. The returns are not granted, as they are associated with fluctuating market conditions. However, this type of investment ensures liquidity.
- Long –term goals: If you have a future goal and it can wait while you plan for it, following investment schemes are advisable:
- Equity Mutual Funds: If there is sufficient time limit for your future goals, consider saving in equity funds. This type of investment also provides a number of schemes to save taxes and diverse options for your long term goals.
- Stocks: Investing in stocks is equally profitable and risky. One should invest in stocks only if they are experienced in the investment field and have a high-risk appetite.
These were certain options for your short term and long term goals. Investment can bridge the gap between you and your future goals, but can also increase it, if not done right.
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Category: Investing
