What are savings plan?

Posted by Jenny Dsouza on March 23rd, 2017

We all dream of living a lavish and successful lifestyle.  You need to start saving from the beginning of your career to lead a secure life in future.  But only saving money is not enough  to achieve financial wellbeing and securing the future for a happy living. Right now there are a number of saving plans that are in the market that cater to an individual’s needs and most importantly fit within the budget.  Nowadays due to easy access to the internet you can compare the various plans, premiums of the plans, discounts on the premiums, the features of the savings plan and the benefits of the plan for an individual. We can work on mutual funds, bonds , securities for fetching benefits. But in the end the focus should be on the savings plan solely. Saving insurance plans are best as they offer two way benefit which gives suitable cover along with market linked earning.

Your best Savings plans are suitable for meeting the short term expenses like marriage , health , educational expenses, etc. It not only offers you an insurance cover but also helps you build a good amount of wealth through market linked activities and investments. You can save money systematically and invest your savings according to your risk appetite. The life cover gives an insured sum in case of untimely and sad demise of the insured person.

When you go for choos3ing your best savings plans always think of three goals in three categories : money for emergency funds,  money for short term expenditure and long term goals to build up wealth.  Money for meeting the short term expenses and emergency funds should be invested in debt funds which will promise safe returns.  Long term goals can be experimented with equity investments, bonds and mutual funds depending on the risk appetite of the individual is willing.  Although these options are risky compared to the traditional methods they have the potential to garner more profits than the available options. 

While opting for savings plan your spending  plan or the budget is also taken into consideration.  This plays an important role in determining the ways to reduce your overall expenditure and increase your income to allocate money in sizeable money towards your savings plan.  Never pay premium which is more than your income source, this will lead in to a financial crunch and hamper your monthly budget. Just in case you are not able to pay the premium there is a chance of your plan getting lapsed and you might get lower returns than expected.

It is important to start saving early so that even if you have losses you can cover them early and produce money. Every savings plan has to start early and even a small add up will be of benefit and will add up eventually. The motive of the best savings plans is to gain long term financial goals. So if today it is not possible for you to achieve your financial goals you can just save over the time and purchase attain the goals.

While buying your best savings plan always think that if you meet with financial crunch or you’re earning source drops, that the savings plan will take care of the financial needs of the family. Therefore, opt for a plan that will help you provide a good sum of insurance cover and which will allows you to create generate big higher profits  from the market investment as well.