Why Should I Earn and Save?
Why should we do financial planning? How I would be benefitted If I do not have a well-written financial plan? How will it make difference in my life? mujhe kya fark padta hai!!
But before answering these questions, I would like to ask some questions from you:
- Main paise kyon kamaata hoon ya mujhe paise kyoun kamaane chaahiye?
- Maine paise kamaane to shuru kar diye ab mujhe bachaane kyon chaahiye?
- Agar main paise nahin bachata hoon to mujhe kya fark padta hai?
Most of us will have answers to these questions because, in this high-tech era, most people understand that if they will not save their earned money then it will directly impact their child’s future, retirement plan which will in turn can serve as a cause that will compromise their quality of life. And in situations, God forbid, if something goes wrong with their business, job or service, then how they will manage to survive in their tough times?
Many of us also would agree that there no financial and emotional support system would become available for us as we are living in nuclear families today, nobody is liable to give us money if we face any financial crunch.
So, from this discussion, it is quite apparent that savings plays a very crucial role in our life and every person must save money for securing their future life.
When a person starts monetary saving, his/her interest will automatically divert towards the best returns that one can get from their savings. Therefore, it has been seen that people mostly invest in gold, property, fixed deposits (FDs), post office schemes, life insurance policies and so on as per their understanding. But the question then arises whether he/she would be able to achieve his/her goal or dream from their savings or investments in any of the asset classes. How a person would come to know about this? How a person would come to know that his present income and saving will be sufficient enough to provide good quality of life to their children both educationally and personally? He/she will be having enough money for the marriage of their children? their retirement will be stress-free and whatever happens to his/her job or business they will not be in trouble. In nutshell, whatever a person is thinking to lead a quality life in the future, the question is whether he/she will be able to do it from current resources.
The answer to all these above concerns is only one i.e., financial planning. It is always advisable to have a well-written financial plan which should be reviewed, aligned, and balanced by us as per our future requirements, at least once a year.
Based on one’s capabilities, many of us can think that we are successful enough to cover our future expenses and can manage all the unexpected expenses in the future from our current income. And hence would prefer not to choose a financial plan.
But in reality, these types of thoughts could be very dangerous for the majority of the population, yet there are exceptions always, but as per finance, one should make his /her decision about what happens to the majority so that one’s life shouldn’t be a roller-coaster type.
Let us understand these by giving live example or by doing one small exercise.
How many of us would know the right retirement age and the amount paid to us at our retirement will be sufficient to lead a good and peaceful life?
Please write on paper, the inflation adjusted monthly requirements and calculate inflation-adjusted monthly pension and pension fund.
This is just one example and a small part of a well-written financial plan, as per my personal experience, inflation part is always the ignored one while planning at the self-level, but it can disturb the overall investor’s calculations and can even compromise the future of the investor irrespective of the plan that one has made for them.
Lastly, I would like to say only one thing that we should require a specialized person, who has full knowledge about financial planning and helps us to prepare a sound financial plan taking into consideration of everything, viz property, gold, equity, FD etc., in such a manner that risk should be minimized and returns get maximized.
Our company Rupee Magic does the same thing for their clients, since you have read patiently, one golden tip from our side which can fetch crores of rupees for you and for that neither you have to save nor you have to cut your expenses, just one tip, you can use Indian government’s Gold Monetization Scheme (GMS). This scheme is a fixed deposit in your physical gold on which you will earn interest and if you invest that interest further in any Systematic Investment Plan (SIP), then in long-term time, you can make crores of rupees without doing any savings or cutting down your expenses. This is just another example of financial planning. We would be happy to serve you more on financial planning. We assure you that whenever you will sit with us, from day one, you will feel a positive difference in your financial decisions, moreover, our company’s vision is only one i.e., whatever our client thinks about his/her future, it ought to be achieved.