“Don’t Save what is left after spending; Spend what is left after Saving” This is one of the most famous quotes, which was said by the renowned investor Warren Buffett, and this makes us think, are we saving or simply spending what we make without being cautious about tomorrow?
The importance of money is high, and it is essential that we all realise and learn about it. Often, we might have sensed that spending money is much easier than making it, which brings in the value and need for saving money even before you spend it.
Why should we Save Money?
– For funding your child’s education or marriage.
– To invest in those investments which will help you beat unforeseen or otherwise inflation.
– To make down payments for a significant asset or other important purchase that involves spending a huge amount of money.
– To have an ample retirement fund that will help you not just live but also enjoy life after you retire.
– To keep an emergency fund that can be used when any medical emergency or unexpected other emergencies arise in your daily life.
How can One Save Money?
Saving is crucial and not an easy game due to the need to be firm and able to control oneself. So as the first step to start saving, you should be able to do the following:
- Make a list of your different sources of income and the total earnings that you will be making during a month.
- Mark the total amount of money you would need during a month to meet your fixed expenses, along with some necessary additional expenses.
- Now, mark a certain amount that you would need for meeting some leisurely requirements, such as shopping, a trip, or other outing expenses.
- Now, mark the other amount as your savings, along with setting a tight budget for the month and keeping aside a small emergency fund.
Once you complete the above-stipulated steps, you will have an abstract idea of the amount you are saving each month. Now, plan how you will invest these savings so that you can reap the best returns from them.
Banking Schemes
Pradhan Mantri Jan Dhan Yojana (PMJDY):
Under this scheme, a basic savings bank account will be opened for a person, and they can deposit any amount of money into it. This account does not require a minimum balance to be maintained, unlike other savings accounts, and will provide you with a RuPay Debit Card, allowing you to withdraw money at any time. The account holder shall also be entitled to an overdraft facility of up to INR 10,000, along with interest credited on the balance held in the account. It also covers insurance benefits of INR 2 Lakhs.
Sukanya Samriddhi Account:
This can be opened with an initial deposit of INR 1,000 with a high rate of interest. And this account can be easily operated and utilised for the marriage or education of your daughter. The depositor shall also be provided with the benefit of section 80C deductions under the Income Tax Act.
Pension Schemes
1. Atal Pension Scheme
Under this, an individual can open a basic savings bank account without any requirement for a minimum balance. They shall also be provided with a RuPay debit card, along with an entitlement to interest accrued on such deposit. There shall also be an accident insurance cover worth INR 2 Lakhs given to such holders.
2. Pradhan Mantri Shram Yogi Maan Dhan
This is essentially a family pension plan, and the monthly contribution to be made shall be between INR 55 and INR 200, which will vary according to age. However, it is worth noting that when the holder reaches the age of 60 years or above, they will receive a minimum assured pension of INR 3,000 per month. And if such a subscriber passes away, the spouse shall receive 50% of the pension as a family pension.
Insurance Schemes
1. PMJJBY stands for Pradhan Mantri Jeevan Jyothi Bima Yojana
This is a scheme that shall be available to subscribers who are between the ages of 18 and 50 years. The risk coverage of the scheme is INR 2 Lakhs.
2. PMSBY stands for Pradhan Mantri Suraksha Bima Yojana
Subscribers of this insurance scheme should be between the ages of 18 and 70 years, and the risk coverage shall be INR 2 Lakhs for accidental death and INR 1 Lakh in case of any partial disability.
Hence, we can conclude that saving money shall be practised as a discipline, as this will help us develop and nurture a good manner of living, as we would be more inclined towards a structured lifestyle from the very beginning of our earning life. This will also help one enjoy a good, happy, and content retirement life.
