Use insurance to generate monthly income – invest in a savings plan today!
Purchasing items on credit can be fun and easy at the time, but paying them off later can be stressful and difficult, especially if you don’t have a savings plan. It’s better to buy the things you want slowly over time rather than in one huge purchase that you might not be able to pay off in full right away. Saving up to buy the item makes it more enjoyable when it’s finally yours and frees you from the stress of wondering how you’re going to pay your credit card bill each month. This article helps you choose the best savings plan out of the plethora of saving plans available in the Indian market.
1) Higher interest rates
One of the ways in which early investment in a savings plan can help you is through higher interest rates. The sooner you start saving for your future, the more time your money has to grow and earn interest. This means that every rupee you put into a savings account now is worth much more down the road.
2) Lower fees
As your account balance grows, so does the amount of money that you have to pay for investment management fees. If you invest with a financial institution, it charges you an annual percentage fee to manage your best savings plan investments. These fees can add up over time. They start at 1% when you open an account and grow by 0.5% every year thereafter until they reach 2%.
3) Hassle-free
Investing in the best savings plan is never a waste of money. Especially if it’s from an early age. The earlier you invest, the more time your money has to grow, and the more likely you are to have enough saved up for retirement. It also means that you’re contributing less each month towards paying off debt such as student loans or credit card balances. And if you don’t have any debt, then the extra cash can go towards building up your emergency fund or even investing in something else like a house.
4) No tax until you need the money
Taxes are not taken out of these accounts, and the money grows tax-free until it is withdrawn. This allows you to save more than if you were putting your money into a regular savings account because you won’t be paying taxes on your interest earnings. This can help you build up an emergency fund or save for retirement without having to worry about taxes.
5) Easier to budget for future purchases with lump sums
Budgeting for any future purchases can be difficult, but saving up for them from an early age can make the process much easier. Contributing to the best savings plan regularly and investing the lump sum at once ensures that you are adequately prepared when it is time to buy something expensive like a car or house.
6) Know exactly how much you have saved each year
Investing early can benefit you later. And while you’re at it, you also must be aware of your annual investments in the plan until the end. If you don’t exactly know how much you have saved every year, it is hard to design for your future as per your initial plan. That’s why it’s important to track your savings and investments every year to make sure you’re headed in the right direction.
7) Gain knowledge about investing as you go
Investing your money to save for the future is not something that should be overlooked. There are many different options when it comes to investing, and the earlier you start, the better off you are later. It’s important to learn about investing as you go so that you know what your options are and can make an informed decision about which option is best for you.
8) Get started sooner
Investing your money early can help you build up a substantial amount of wealth over time. This will give you more options when it comes to retirement, education, or even starting your own business. Canara HSBC Life Insurance understands that saving for the future can be difficult with so many competing priorities in your life, which is why we’ve created the iSelect Guaranteed Future to help you achieve your financial goals. This plan offers growth on all deposits over its term—which means that as long as you put money into it consistently over its lifetime, you can relax knowing that it has long-term a positive impact on your overall finances. And because this is a tax-free investment vehicle (meaning there’s no additional taxation on any gains!), it’s perfect for people looking at long-term goals like retirement or college funding!
Conclusion
It’s never too early to start saving for the future, and that’s especially true if you can get an employer to start matching what you contribute. Investing in an IRA or 401(k) from an early age can help you become financially independent later in life, without having to worry about paying off debt in the meantime. These are some reasons why investing in your savings plan early on will benefit you later on.
