When you’re in your early 20s, you’re focused on the present. You live for the moment and don’t necessarily think about your future.. In other words, it’s easy to be careless about spending money because you have plenty of cash to spend and Saving Plans.
However, when you hit your 30s, your priorities will change as well as your values. You’ll start thinking more seriously about contributing to a savings plan for the betterment of your future. With that said, let’s take a look at the advantages of starting a savings plan early and know about the best saving plans available in the market.
Advantages Of Starting An Early Saving Plans
Enjoy The Power of Compounding
Compound growth is an investment concept related to the reinvestment of earnings, capital gains, or other forms of income. It involves earning interest on the principal (“original” investment), plus all of the interest that has grown up in the meantime. The power of compounding lets you grow your money much more quickly and earn better returns on your investments.
If you are young, you are more likely to invest money in a savings plan. Compound growth is what makes the difference between investing your money through a financial institution and shoving it in a locker at your home. Young people tend to have fewer financial obligations, which allows them to invest their money in long-term investments and harness the power of compounding.
Stay Prepared Against Unforeseen Events- Saving Plans
Life is full of surprises, so it’s important to manage your finances at an early age so they deliver the most happiness for you. Prepare for such surprises by having a buffer in your finances. Having such a cushion will save you from making desperate and costly decisions when an unplanned expense comes up.
It’s crucial to start saving money now so that you’re prepared for the opportunities that life throws your way. To handle those emergencies without having to significantly change your financial plans, you could put money aside in a savings plan. Moreover, to extend your family’s safety, even more, you can also consider getting a life insurance plan.
Adopt The habit of Consistent Savings
Most young parents don’t learn much about finance in school. They’re not taught how to save for a house, a car, a business, or a comfortable retirement. And many of them find these topics intimidating and confusing. If you want to pass a financial lesson on to a new generation, you need to model the behaviour.
Getting an early start on saving and being organized when it comes to managing finances can help you be better with your money and understand the value of getting an early start. As a savings plan requires you to put aside a specific amount of money periodically, it also helps you develop the habit of savings that’ll prove to be very helpful in the future.
Accomplish More Than Just Retirement
If you’re in the process of planning for retirement, it’s important to make sure you have an accurate picture of how much money you’ll need to retire comfortably. If you want to travel, spend time with family members, and buy assets, it’s worth knowing that you’ll have money for these things if you start planning earlier.
You may also want to invest in your children and grandchildren’s education or help them start their own families. If you start saving early, you’ll give yourself a better chance of reaching your money goals. Additionally, you’ll also be able to live a comfortable life in your retirement without worrying about your finances at all.
Best Savings Plans Available in India
1. Canara HSBC Oriental Bank Of Commerce – Invest 4G Plan
If you’re looking for a savings plan that will let you save a lot of money over the long term, then Invest 4G Plan is an excellent choice for you. It’s a carefully crafted savings plan that allows you to accumulate a sizable corpus for your loved ones and yourself. The various customization options available in this plan allow you to align your investments with your future goals. The plan is suitable for long-term savings, since premium payments are not burdensome, and you can choose any payment option to suit your preferences. This is one of the best saving plans available in India.
2. Bajaj Life Insurance Capital Guarantee Solution
The Bajaj Life Insurance Capital Guarantee Solution allows you to invest your capital in guaranteed upfronts and market-linked products, which means that you’ll receive a guaranteed amount of money at the end of your investment period. The fund is very steady and able to provide a high return in a relatively short period. That’s enough to build a significant cushion in the long term that will allow you to fulfil your family’s dreams and goals.
3. Max Life Monthly Income Advantage Plan
Max Life Insurance’s Monthly Income Advantage Plan allows you to build a large financial corpus for your family to sustain their lifestyle if you pass away. It is a participating, non-linked savings life insurance plan, which means the company also takes part in the profits. This is a good savings plan with a variety of advantages and features. Because it offers monthly income for up to 30 years after the completion of your policy tenure, this savings plan is among the most popular in India.
4. Edelweiss Tokio Life Active Income Plan
The Edelweiss Tokio Life Active Income Plan provides you with regular income payouts for the rest of your life. The plan offers two policy variants with different benefits, depending on how much money you put into the plan at the beginning. Moreover, the policy also qualifies for tax benefits under Section 80C of the Income Tax Act of India. With this plan, you not only plan for your retirement but also provide for the betterment of your family’s future in the event of your unfortunate demise.
Bottom Line
The Edelweiss Tokio Life Active Income Plan provides you with regular income payouts for the rest of your life. The plan offers two policy variants with different benefits, depending on how much money you put into the plan at the beginning. Moreover, the policy also qualifies for tax benefits under Section 80C of the Income Tax Act of India. With this plan, you not only plan for your retirement but also provide for the betterment of your family’s future in the event of your unfortunate demise.
