Life can be uncertain, and you never know what the future holds for you. You may have an emergency at any time without any prior warning, causing financial turmoil. While you cannot predict or prevent any crisis, you can be prepared to handle such situations by having sufficient savings.
Let us look at some of the critical reasons you must save and invest your money for the future.
One of the most significant benefits of investing and saving for the future is that it allows you to be financially independent and gives you a financial cushion against unexpected circumstances. Every penny you save and invest will make your future a little better.
No matter your financial status, money plays a vital role as you never know what will happen the next day. You may suddenly lose your job, and your family may face financial turmoil in the event of your unexpected demise, etc. In such a situation, you may rely on your savings to take care of your regular expenses and live a life of dignity without relying on anyone else.
Be debt free
Regular savings and investments in financial instruments like an assured savings plan can help you accumulate a considerable corpus over time. Upon maturity of the savings plan, you can use the wealth to pay off the loans or mortgage (if any) and live a debt-free life. The earlier you start saving, the more considerable wealth you can accumulate, and the earlier you can be debt-free.
Take an early retirement
Many people aspire to retire at a young age and pursue their dreams. However, only a few are able to achieve this because they don’t have enough financial backing, and they are forced to work till they reach their 60s or even beyond. However, you can accumulate funds for your retirement by saving and investing money from a young age (as soon as you get your first paycheque).
There are many avenues, including special retirement plans and assured savings plans, allowing you to build a sizeable corpus. By investing in a savings plan, you can get assured savings as well as guaranteed returns. Depending on your future goals, once you have accumulated enough funds, you can take early retirement and live the life you have envisioned for yourself.
Have peace of mind
When you have enough savings and investments, you automatically feel a sense of security and peace of mind knowing that you have the necessary financial resources to fall back on during an emergency. With sizeable savings, you can be confident in making certain life decisions and even take risks like starting a new business or voluntarily taking early retirement to pursue your other life goals.
Most people invariably consider applying for a personal or mortgage loan during an emergency. However, when you avail of a loan, you not only feel the burden of debt repayment, but also you end up paying more than you borrow in the form of interest. However, if you have savings, you can easily use the amount to get through an emergency or whatever situations you face in the future.
Enjoy tax benefits
Tax saving is a critical aspect of a sound financial plan. When you save and invest your money in different financial instruments like life insurance, ULIP assured savings plans, and retirement plans, you get valuable tax benefits under different sections of the Indian Income Tax Act.
As they say, in the financial world, every penny saved is a penny earned. The sooner you start saving and investing, the more tax saving you can enjoy.
Now that you know the importance of saving and investing for your future, start investing and saving now so that you and your family never face any financial hardship.