Savings Calculator

It is imperative for you to set specific goals, both long term as well as short term as they will induce you to start saving money. By setting a timeline to achieve your specific goal(s), you could begin planning how much you need to save each month.

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Importance of Saving

One amongst the main objectives of every individual’s life is to secure himself and his family from the uncertain eventualities. We all want to have a peaceful life; and peace of mind comes with financial security. To have a sound sleep it’s essential to be financially sound; because knowing that you have enough funds to handle the unforeseen events of your life is what gives you mental peace.

Therefore, securing your life through financial planning is utmost important if you wish to live a quality life; and the most essential component of financial planning is saving. Financial planning cannot be done until you have the required input of savings. Thus, saving a share of your hard-earned money is utterly desired for a better tomorrow.

Listed below are the key reasons of why saving your money is important:

For fulfilling your big dreams

All of us have set goals to achieve in our lives but only a few actually achieve them; and they are the ones who had enough funds to invest in their dream. You might dream of a big bungalow, a luxury car, a grand wedding, or a world tour, but the most essential to fulfill these is money. Big dreams cannot be fulfilled in a day. They need years of planning and persistence; and most of all, savings. Therefore, the key to live to dreams, implement your ideas and fulfill your aspirations is regular saving.

For attaining peace of mind

Naturally, everyone requires a feel good factor in his/her life. To lead a healthy life it is not only essential to be physically fit but also mentally stable. Being self-sufficient is essential as you cannot depend on anyone for your needs and requirements. Having funds in your account that are enough to handle the eventualities of life is the most calming feeling. It also gives us the inner satisfaction to have achieved something without seeking anybody’s help. It thus makes us respect who we are and brings happiness.

For overcoming the emergency crisis

A few expenditures come at any time and in any form in every individual’s life. A sudden hospitalization, a job loss, an accident, a car breakdown are a few instances that bring such expenses along. Along with being unplanned, such expenses are unavoidable as well. To avert the financial crisis in such situations, it is important to save for them in advance. Most importantly, you need not depend on and search for the support of others, as at times it might not turn up when you need it the most.

To become independent

Independence in life comes with financial independence. Regularly saving the funds helps you lead your life with freedom. If you have enough savings, you grab the opportunities that come your way. Savings ensure that your ideas and opportunities become a reality. There are times when you need to invest in a venture to become a part of it; and eventually seek returns from it. Having sufficient savings enables you to take hold of such life changing opportunities.

For your happy retirement

It is important to save enough during your working years in order to lead a happy post-retirement life. Savings are a must if you want to spend the golden years of your life in peace. Setting aside a sum of money in the form of savings at regular intervals can be an investment for your future. To build a health corpus for your post-retirement needs, you should start saving as early as possible. It is ideal to start saving as soon as you start earning. With ample funds in place after retirement, you can fulfill all your needs and plans at ease.

For your family’s secure future

If you have a family to look after, then you need not only fulfill your own desires but also take care of the various needs of your family members at various stages of life. It may be the time of your child’s birth or his admission for higher studies. From buying a piece of jewellery for your wife to taking your family for a vacation, the list of your family’s desires could be long and each would require a good sum of money. Saving is imperative in such circumstances.

For improvements and enhancements

There are times in life when you might need funds to fulfill the frequent need for improvement in your assets or valuable possessions. This is when savings come into the picture. With sufficient funds being available, you can ensure time to time upgrade of your valuables.

Inculcating a habit of saving in yourself can pay you well through all the phases of your life. Saving helps you become self disciplined. Saving brings financial security in your and your family’s life and therefore is a healthy habit.

The reasons might be different, but, saving is imperative if you want to lead a peaceful, happy, and secured life. It helps you benefit from the power of compounding. It is only by saving regularly that you can be prepared facing all the unforeseen circumstances in life.

It is imperative for you to set specific goals, both long term as well as short term as they will induce you to start saving money. By setting a timeline to achieve your specific goal(s), you could begin planning how much you need to save each month.

Let’s do the math for you!

Savings Duration Calculator is a specially designed tool that helps you calculate the time you would require for reaching your savings target on the basis of your savings till date, your saving habits, and the rate of interest applicable to your savings.

To use this calculator you need to provide the following inputs:

• Your savings goal: This field requires the amount that you desire to save. However, it is essential to be realistic while calculating this figure as this is the amount you have set aside for key life events, such as your marriage, your child’s birth, your child’s higher education, your child’s marriage, and your retirement. It also should include a reserve for expenses in case of emergencies, and funds for investment opportunities that are yet to come your way.
• Amount you have already: In this field you need to enter the total amount that you have managed to save till date.
• Regular savings account: Here you need to input the amount that you regularly manage to save. It gives you an option to select the monthly or the yearly savings mode from the dropdown menu.
• Gross annual interest rate (%): This is the rate at which you receive the interest on your savings before tax or any other deduction. This rate can vary from 1 to 20 % at the max.