Our future is as it should be, unpredictable - full of shocks and surprises. By saying so I want to point out the ‘n’ number of financial emergencies you’ll incur later in life. The worst part, you can’t avoid them no matter what you do. However, there’s a silver lining, the uncertainties will bring out the best in you and improve your financial management skills. You can always prepare in advance to tackle the financial emergencies. You can use the various savings plans available in the market to save money for your future needs.
you should invest a small fraction of your income in saving plans at regular intervals while you are still young. You can use the invested corpus to meet your financial needs during your rainy days. To name a few financial emergencies wherein you'll realize the importance of investing in savings plans, there is:
1. Down-payment of an expensive purchase: Let’s accept the fact that there will be a time when you’ll need a huge amount to pay the down payment of maybe a car, a house etc. and you won’t have it. Given the circumstances, you’ll either end up taking a loan for the same or making a compromise with your desires. Why not avoid such possibilities by investing a small portion of your income for such needs?
2. Your kids higher education: Your kids higher education is something which you can’t avoid even if you want to. Given the rising education inflation rate, enrolling them in a good college will actually cost a fortune by the time your kids grow up.
3. Retirement: Last but not the least, your retirement is a time when you’ll lack a source of income. Maybe not if you have a booming business of your own, but definitely if it's otherwise. Besides, it's always better to have financial freedom at each stage of your life.
In the end, let’s not ignore the possibilities and prepare for the future in advance. Find a good investment plan and start investing now!
Read Also: The Importance of Saving Money
