9 reasons to Save & Invest for the Future

To begin with, are you saving for the future ?

If its Yes, you must already be wondering - isn't it obvious - don't we all do it for a rainy day or for our future ?

I have come across nearly 1000 individuals - either during my one to one or group meetings with various families/group settings in the past 4-5 yrs.

Majority findings thru my interaction:

1. don't have a plan, 

2. do it randomly - relying on tips here & there - from friends & family - nothing in a planned way,

3. live hand to mouth,

4. 'investing' in insurance policies and Bank FD's

5. have ongoing personal loan / credit card loans getting into a debt trap etc. 

The above are primarily due to lack of financial knowledge, seldom do they do they seek advice and, they postpone their decision to even begin.

Now, let me invite you to the main topic of the article.

Reason #1: It will help you in bad times.

Don't we know how we faced an emergency during the lock-down phase?

In these uncertain times, an individual might have a job loss, a pay-cut etc.

> A planned emergency corpus will help the family tide over the challenging times.

Reason #2: You would need an income when You stop earning.

People forget, monthly income / earnings stop - life doesn't, expenses don't. The phase is known as 'Retirement' - a phase when your income & earnings stops.

> With advancement in medical sciences and, awareness towards healthy lifestyle - the average life span has increased - ideally, the retirement corpus has to be adequate for 40 yrs after you stop your earnings.

Reason #3: Money gives you security, confidence, a peace of mind and, allows you to live life on your terms. It gives you an subconscious edge; not leading to stress. 

> Hence it’s very important to start saving early for achieve security, confidence, peace of mind !

A 35,000 per month expense today would be 200,000 after 25 yrs - just due to inflation. A simple math would indicate a corpus requirement of 10 Crs for a 40 yrs period (24 L per year for 40 yrs). 

> This is achievable - subject to the investor allowing it to compound over the next 15-20 yrs and, doesn't disturb the cart.. 

The investor must ensure that the corpus earns enough to beat the inflation.

Reason #4: to get better with savings by way of progressing ahead in life.

During our reviews, we often get a feedback - "thanks to you we are able to see the specific amount in our monthly statements". The very tone of the voice changes when they start mapping it to their goals and, the growth in their investments.

We act more as a coach and, get them better at the approach towards their goals.

> For eg. A sum of 25,000 over 25 yrs period would collect ~5Cr, left untouched has the potential to generate a passive income to continue living your life without compromises during your retirement... Imagine what would you do with this amount !

Is 25,000 a big amount ? No. Its the TIME (25 yrs) that's play a major role and, the consistency of investment without getting deterred.

Reason #5: To be prepared for major life events.

Each event requires a specific Amount - either today or in the future; only that the future cost has to be adjusted for the inflation.

From, kids higher education, marriage, medical emergencies, travel, life style expenses and, the longest vacation - Retirement.

Remember, you can have loans for all events; but, not for Retirement. 

> Having a planned approach to wealth creation journey would increase the probability of You meeting Your goals with less stress and on time without compromising, isn't it ? 

Reason #6: Plan & Spend without compromises

When you have your finances planned, a planned budget for your expenses - one can live a life without any guilt or compromise.

Reason #7: Explore an alternative career

Gallup surveys have often indicated disengaged workforce ! There would be many who might be keen to explore a career outside their job, isn't it ?

> Its a classic, making passion your profession yields unimaginable results. We have seen engineers turning world's best cricketers and musicians, haven't we ?

Reason #8: To achieve financial freedom, the coveted goal. Generate a regular passive income for your monthly life style expenses.

Reason #9: To leave a legacy for causes dear to you. 

Imagine if You can create a private Family Trust to fund education for the under-privileged or, supporting an old age home or, supporting healthcare for the needy. You will have the satisfaction of doing Your bit for the society and community at large !

> We are on a mission to help your achieve financial freedom.

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Note: 1 Crore (Cr) = 10 Million (mn)