Money, Savings and Investment

I am starting with these three words which are very essential for everyone. You know well that money is everything “paisa bolta hai”. Strangely, we are dependent upon money because if we have money then we can enjoy our life better with family.

In childhood, when we get Rs. 1 or 2 then we are going to the shop for buying chocolates and we feel happy. Our parents also give us money to buy them. But when we get addicted to chocolates then our parents tell us that if we eat chocolates then we get a cavity in our teeth.

This situation seems strange but this is the starting point of the importance of money in our life. We think if we have money then we can buy many but we can’t because we need to respect our parent's talk.

Further, when we are going to school then we also get pocket money from our parents and fulfil our needs. But this time no one is here to stop us and guide us to keep our money in the bank or our piggy bank “Chukri” as savings because this is the time to keep the money for the future. No one knows when we required this money in the needed time.

Saving is an essential part of our life which must be learned by youngsters because this is the time when our requirement list is huge but after purchasing everything, we lose our money and feel noting. We become helpless just because of money.

Requirements have no end. If our money goes out of our pocket then it will rarely come back to us. So, we need to keep the habit of savings. Now the question is how to create savings and where to keep them.

Suppose, If you are a minor, you can approach banks for a minor account or if you attain the age of 18 or more you can easily open your bank account. Try to keep your money which is your savings in banks. Nowadays, there are many options available in the bank through Internet banking from where you can start your savings by opening RD Accounts. Remember never to keep a huge amount in one RD. Make them in small amounts for a different period so that if you have a requirement then you can use them at maturity. For example,

If You have Rs. 1000/- monthly savings then you can invest Rs. 500/- in RD & PPF and the rest Rs.500 in your Bank Account like,

• Rs. 100 p.m – in one RD for 2 years
• Rs.100 p.m - in Second RD for 3 years
• Rs.100 p.m – in the third RD for 5 or 6 years and
• Rs.200 p.m- in PPF account for 15 years
• Rs. 500 p.m – in Bank Account

This lumpsum amount can help you to keep your saving continue which will help you in the future.

Apart from this, there are many government schemes but in my view, these are the safest mode of creation of Savings.

Now, the question is if we are saving our money in banks then what is the importance of Investment?

In layman's language, Investment is the term that is used to invest our money for the future benefit of our family. In taxation, Investments are covered under deduction under Chapter VI-A (Section 80C to 80 U) in which every section says about a different type of investment that can reduce our income for computation of Tax. But for every student, this chapter is very important for their life because it helps them to understand the required savings in the form of Investment.

When we mature, our responsibility becomes too much for parents and family. We think about Investment in many areas like

1. Insurance premium- For their health care.
2. Mediclaim -To cover our family health protection.
3. Pension Funds – For retirement purposes and many more.

In the last, I would like to suggest our readers keep the habit of Savings and also teach your dear ones about it and secure your future without losing your earned money by any wrong decision.

It is very precious.??