10 Reasons To Save Money And Invest In The Future

There's a popular saying ,“Save money, and money will save you”.

What this means is that your wealth is not determined by how much you earn, but by how much you save and invest from your earnings.

Then again, savings alone won’t help you achieve your goals because of the silent thief: inflation! As per a CNBC report, Matt Rogers, Director of Financial Planning and CFP at eMoney Advisor, suggests that we should follow the 50/15/5 rule - whereby 50% of your income will tackle your essential expenses, 15% will be allocated for retirement savings, and 5% to short-term financial goals such as building emergency funds. As per Forbes, a young person can start their investing journey with 15% of their total income. However, if their goal is to reach financial freedom in their 40s or 50s, 20% of income should be invested. One of the best investments today is gold. Nowadays, digital gold has gained momentum among new age investors because it eliminates the hassle of maintaining physical gold. With indiagold, you can invest in digital gold through a very simple process.

Young people have high risk appetites, and therefore prefer risky investment avenues. However, the story may be different for a middle-aged person who wants to grow their earnings steadily but securely. Therefore, prudent investing is essential to avoid financial adversities. So let's get to it! Here are 10 reasons to save money and invest in your future:

1. Become financially independent

Financial independence means having enough to cover all your expenses without needing to work for the rest of your life - but you cannot become financially independent if your spending = your earnings. If you want to attain financial independence, you will need to invest enough so that the ROI generated from your investments covers your expenses.

2. Build assets

You need assets for two purposes: (i) To build generational wealth and (ii) To generate passive income. While passive income helps you become financially independent, generational wealth helps you become wealthy and grow your net worth. Both require investment in appreciating assets like gold, shares, mutual funds, real estate etc. Compounding reaps benefits later in life. Thus the earlier you save, the wealthier you become.

3. Unforeseen emergencies

Life is uncertain. You never know when any emergency may arise and financially drain you. Therefore, it is essential to have a financial cushion. As a thumb rule, always maintain an emergency fund for up to 6-8 months so that even if your earnings stop, you can rely on the fund till the time you start earning again.

4. Purchase a house

Owning a house is still a dream for many. The only thing that’s stopping you from buying one is the lack of proper financial planning. With regular savings and investments, you can easily buy your dream house without making major compromises.

5. Retirement planning

Savings become more important as you grow older. To live a comfortable & independent retired life, you need to start saving early on. Assuming you retire at 55, with a life expectancy of around 80 years, you should save enough to cover 25 years of expenses. With age, the possibility of being affected by chronic ailments also increases. Therefore, to prepare for such uncertainties, you need to raise your financial awareness.

6. Education

Pursuing higher education from reputed institutions, especially abroad, may involve heavy expenditure. Apart from fees, major expenses may include accommodation, books, travel etc. Therefore, it's important to have enough funds at your disposal to cover all these education-related costs.

7. Pursue your dream career

Most people slog it out at work, and don't even find what they do interesting. The fact that you might spend most of your life doing what you don't like can be unnerving. If you want to get out of the rut and shift your career, you need to have enough savings and investments to cover the initial low-income period and expenses high. Even if you want to leave your job and kickstart your own business, you need capital. All this is possible only if you maintain discipline in your savings.

8. Escape the debt trap

Only proper financial planning can save you if you're caught in a debt trap. You need to make a list of all your debts and save meticulously to get out of it. The longer you stay in the trap, the fiercer it becomes. Keep saving and start prepaying high-interest debts like credit card loans, personal loans, etc. If you maintain discipline, you will eventually come out of the debt trap. You can also go for low-interest, collateral-backed loans like gold loans to get proper financing. indiagold offers high value gold loans for customers' credit needs, from the comfort of their homes and at very affordable rates.

9. Serve society

If your goal is to bring change in this world, you can start wherever you are - but you'll probably need some finances for whatever you plan to do. Save, invest, grow and help. The more resourceful you are, the more lives you'll be able to change.

10. Travel

Come on, you knew this was coming! Everyone has a bucket list of places they've always dreamed of visiting. But very few fulfil it. If you want to go to your dream destination but have finance as an obstacle, your wait is over. With proper savings and investments, you can travel the world without worrying about finances. Start allocating a fixed part of your monthly income and invest in appreciating yet liquid assets like gold. Once you feel you've saved enough, you can liquidate your assets.

The Bottom Line

There are various investment products available in the market. One of the most stable and preferred products, especially for us Indians, is gold investment. Gold has inherent value, and its prices have always been on the rise. During the pandemic, while markets fell, the value of gold surged. Because of its inherent value, steady returns and lower risks, gold has been a trusted savings investment channel from the times of our parents and grandparents. And this remains true even today!

With proper financial discipline and planning, you can achieve most of your goals. If you want to invest in gold, indiagold provides an option to invest in digital gold. Apart from investment, indiagold provides the most affordable gold loans, with the entire process completed within just 30 minutes - at your doorstep.