Money plays an important role in our lives, it’s essential for saving money instead of spending less than you earn. It is a good practice on saving money if you really want to build up some amount savings. Saving money is nothing but putting some money aside instead of spending it. Without money, we cant get everything many things will not succeed and we will get many problems and tough in our life.

As it provides the security of financials and freedom you can also avoid debt as it relieves stress. However, we spend more of our money on presents despite knowing the extreme importance of money in our life. Saving money plays a vital role for many reasons. Some of them are as follows.

• Emergencies
• Child’s Education
• Marriage
• Wealth
• Big purchases

Why making money is not more important than saving money?

The more you save your save money, the more you can control your destiny. Almost every person works so damn hard to earn money they just put in hundreds of hours each year. Incredibly saving money is the most important in our life.

Benefits of saving money?

Financial Backstop is provided by savings for increases the peace of mind and feeling of security. Seed money is also provided with my savings for higher-yield investments such as mutual funds, stocks, and bonds. One of the main benefits of saving money is it also allows the person to live their life so comfortably and will be happy in their life too. It will also help the person to enjoy their life to the fullest and to make a bright/Secure future.

Why saving money is important?

Ever-Creating a surplus is not so critical as saving money, Control of monthly finances is the very first step towards growing the wealth. Once you have a monthly surplus you can even build up your balance sheet instead, managing cash flow or building up your wealth.

The most important reason to save money in today’s life?

To save money-emergency fund. For unexpected emergencies and expenses, each and everyone should have an emergency fund. To is saving money as soon as possible is another extremely important reason for Retirement. Education, recurring or irregular expenses, down payments for the house. Maximizes the interest rates.

The types of saving products are as follows;

• Kisan Vikas Patra: KVP was first Launched in 1988 by India post it is the saving certificate. Certificates of KVP are available in the denominations of 1000/-, 5000/-, 10000/-, and 50000/-. In KVP 1000/- the amount is the minimum that can be invested. Income taxes are not offered by Kisan Vikas Patra. The amount invested in KVP gets doubled in 124 months as per the rate of interest. So 6.9% with effect from 1^st April to 31^st March

• Public provident fund: PPF is the most popular Long term saving -cum-, mainly due to returns, tax savings and safety. It was first offered to the public in 1968 by the finance ministry’s national saving institute, In a financial year minimum deposit of 500/- and a maximum deposit of 1,50,00/-. From the 3^rdfinancial year to the 6^thfinancial year loan is available and from the 7th-year withdrawal is permissible.

• Shares: Shares are the smallest unit of equity incorporation, it is used as a mutual fund in financial markets. The shareholder of the corporation is the owner of the company. All of the shares of an enterprise are referred to by share capital. They are a few types of shares such as equity shares, preference shares, redeemable shares, ordinary shares, and non-voting shares.

• Mutual fund: A company where money is pooled by many investors, and that money investors invest in securities such as stocks, long-term debt, and bonds. The term is most probably used in the United States, Canada, and even India. The portfolio is the combined holdings of mutual funds. The example of mutual fund for SIP are; Parag Parikh Flexi cap fund direct growth, Mirae asset emerging Blue-chip fund direct growth.

• Gold: RBI issues sovereign gold bonds in tranches, as a balanced portfolio gold can be a good investment asset, physical gold return rates are never profitable if you invest in gold jewelry. In 2022 we can see gold being a good hedge against inflation. You can buy gold through the best dealers who are online JM bullion or collector or local dealer. The price increases in gold are outperformed on average.

• Commodity: If you invest in raw materials or some primary products they are nothing but commodities. These funds invest in silver, gold, metals, oil, wheat, and agricultural goods. In commodity crude oil is the best for profitable returns. The major categories of commodities are metals, agriculture, and energy as well. These are mainly high-risk in comparison to stock trading. Post office scheme: It is the depository scheme that is provided by the post office throughout India. It provides a monthly income of about 6.6% can earn by investors every month. The post office is one of the safest schemes for investment. Post office schemes are also as, RD, TD, SCSS, KVP, NSC, PPF, and PO MIS.

• Certificate of depository: CD holds the fixed amount of money for the fixed period of time it plays as a savings account, the issuing bank pays the interest and it pays for six months, one year, or five years, and in exchange issuing bank pays. The benefits of CD are fixed-rate, higher returns, security, and interest options.

Conclusion:

Saving a little can help to be less dependent on others, do a lot of things for yourself, and can help to make bigger changes in your life. Eventually, it’s very hard to make the money as you don’t have enough things to start with, although also it’s impossible to borrow money, and even if we borrow from family or friends we need to pay it back.

Written By – Sakshi Khadelwal