If you ask any good investor, then they will tell you this: Money doesn’t grow overnight on trees, but your hard-earned money can surely multiply and grow overnight when you sleep peacefully.
Getting started beforehand gives you the upper hand of time that can be used prominently to generate wealth. The advantage of compounding is that it can generate a considerate savings kitty, provided you begin early.
When it comes to fixed deposits, the interest procured is reinvested, which ultimately leads to a bigger principal. Thus, the advantage of compounding comes in.
When it comes to wealth creation instruments like equities, investing for a long haul will provide the advantage of multi-fold surges in the money market.
If you’ve recently started to work, then you should consider one of the best savings plans and start investing immediately. Here are the five best investment and savings plans priorities for beginners:
The earlier you start to plan for retirement, the better. With the increasing inflation, slow-paced wage growth, and increasing life expectancy levels, planning beforehand is now more critical than ever.
Retirement planning is an excellent two-phased strategy, wealth generation in the beginning stage and wealth conversion while you get closer to retirement.
Investing in retirement savings plans lets you systematically invest a particular amount of money every year as premiums while enjoying a life cover and fund growth.
2. Health & Life Insurance
Healthcare expenses are rising faster than the inflation rate. With new diseases and infections on the rise, having health insurance has become more crucial than ever.
Even while treating any minor illness, you can spend lakhs of rupees in exceptional, high-quality private hospitals. Health insurance cover is the best solution to cover the hospitalization expense.
Plus, we live in a world where everything is dependent on money. So, what if you’re the family’s breadwinner and die suddenly? In that case, your family would be devastated due to future financial troubles.
Here, having a life insurance cover is the only best solution to financially protect your family in the event of your untimely demise. Your family (beneficial nominee) gets a lump sum assured amount.
3. Emergency Savings Fund
In today’s scenario, the markets are volatile, health is constantly triggered, incomes are unstable, and expenses are rising.
To avoid any unexpected, shocking expense, it’s advisable to manage contingency expenditures with a fund. You get the most out of such a fund only when you save and invest smartly.
So, choose savings plans where you can enjoy flexible withdrawals and use the fund for any necessities.
4. Long-Term Wealth Plan
After the end of a particular period, you’ll have some guaranteed sum assured to build your dream house or fund your child’s college education.
You’ll consider this option in a stream of payouts for the many years to come as construction expenses vary from one stage of progress to another, and the college expenses need to be paid off every year.
Having a guaranteed savings plan can meet this requirement as you invest the money only for a specified period while getting returns as assured payouts.
5. Short Term Wealth Plan
Your short-term lifestyle goals focus on immediate needs like a family vacation, fitness, car modification, etc.
If you’ve begun to invest beforehand, then your fund balances will undergo a prominent growth. Thus, making your short-term wealth goals more pursuable and affordable.
Visit here to invest in Kotak Guaranteed Savings Plan.
In today’s volatile and uncertain market, it’s best to have savings plans for your uncalled or untimely monetary needs. Thus, contact the best institution and get started with the paperwork now.
Click here to know more about Kotak Guaranteed Savings Plan: https://www.kotaklife.com/online-plans/savings-plan