Saving Tips for Beginner

Meaning and Importance

What Is Saving?

Saving refers to the act of setting aside a portion of income or resources for future use rather than spending it immediately. It involves putting money into a savings account, investment, or other financial vehicle with the intention of accumulating funds over time.

Savings are typically used to achieve financial goals, such as building an emergency fund, making large purchases, or preparing for retirement. By choosing the best saving scheme, individuals or households can secure their financial future and maintain financial stability during unexpected circumstances.

Importance of Saving Your Money

Saving is important because it establishes financial security and supports financial goal achievement. Long term savings plan also facilitates retirement planning, aids in debt management, provides opportunities and flexibility, and ultimately, enhances peace of mind.

Thinking of Start Saving? Here Are 6 Tips for You

1. Review Your Monthly Income and Spending Habits

   First, make a list of all your income. Then, subtract your biggest monthly expenses like rent or mortgage, insurance, and other major bills. This helps you figure out how much you can save each month.

2. Separate Your Money

   Separating your money means putting aside different amounts for specific purposes in separate places. This helps you manage your finances better by setting aside money for savings, bills, spending on extras, saving for retirement, and emergencies. There are three methods you can do: the percentage method, the leftover method, and the cash method.

3. Set Up Automatic Transfers to Your Savings Account

   By scheduling regular transfers from your checking account to your savings account, you ensure that a portion of your income is consistently set aside for saving without needing to manually transfer funds each time.

4. Write Down Your Savings Goals

   Begin by setting a straightforward goal or make a list of things you want to achieve with your savings. Whether it's something you want soon or further down the road, ensure your goals are SMART: Specific, Measurable, Actionable, Relevant, and Timely.

5. Do Your Research

   Doing your research is a crucial saving tip that involves gathering information and understanding your options before making financial decisions. Whether you're choosing a savings account with the best interest rates, comparing investment opportunities, or planning major purchases, researching helps you find the best saving scheme that maximizes your savings potential.

6. Find the Best Saving Scheme Through Savings Plan

   A savings plan works like an insurance policy. You pay a regular amount (premium) into the plan, which is invested in safe investments, not in the stock market. The plan guarantees a set return. Over time, your money grows, and when the plan matures, you receive periodic payments or a lump sum.

Now, let’s find out the best saving scheme in India by PNB MetLife.

Best Saving Scheme by PNB MetLife

Monthly Savings Plan

This plan provides a simple way to receive guaranteed monthly income once it matures. You can use this money for your daily expenses, and it also includes life insurance coverage for added security.

Guaranteed Return Plan

The Guaranteed Return Plan is ideal for those seeking assured savings for important life events that also includes life insurance. Most of the money is paid out when the plan ends. One unique feature is the option to withdraw funds when needed.

Money-Back Plan

This policy gives you part of the guaranteed amount at regular intervals, as well as life insurance coverage. It also provides money periodically, which can be used for important expenses like education, weddings, buying a home, and achieving financial goals.

Endowment Plan

An endowment savings plan gives you a payout when it ends and includes life insurance coverage. There are two types: profit plans that share company profits and returns with you, and non-profit plans that only give you the returns that accumulate over time.

Unit Linked Insurance Plan

Unit Linked Insurance Plan are linked to the capital market, and while their returns fluctuate based on the market, they offer higher returns in the long run.

What Are the Benefits of Savings Plans?

A savings plan includes life insurance to protect your family financially if you pass away unexpectedly.

Policyholders can enhance their savings plan by adding extra features that offer additional financial support beyond the basic benefits for maturity and death.

Savings life insurance policies provide tax benefits under the Income Tax Act of 1961. Premiums are deductible under section 80C, up to ₹1,50,000 per year. Additionally, the maturity and death benefits are tax-exempt under section 10(10)D.

How Can I Start My Savings Plan?

PNB MetLife offers a variety of investment plans in India, including best saving scheme that is tailored to meet your needs and financial goals. Please leave your details below so our helpful agent can contact you to assist in finding income tax saving options, long term savings plan, and ultimately the best investment for you.

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