Is it important to have Goals oriented Savings? A friend of mine is earning a lakh a month, and when I asked him, how much is he saving per month, his reply was close to 30k per month. While saving 30% of monthly income is a good savings rate, when I asked him if he has assigned any of the goals to his savings, he went bonkers. Even, as per World Bank Data Gross Domestic Savings for Indians in the year 2014 was 29%. But savings without goals is like doing multiple graduations in various courses without knowing the purpose. Remember those good old movies, where our Hero used to keep money in different kitchen utensils for different purposes – Behan ki shaadi, Naya Ghar, etc. etc. There are many benefits of assigning goals to your savings be it in any asset class – Gold, Equity, Debt. In fact one can select asset class depending on the goals. If Goal is for short term like 1 year or so, one can look at fixed income instruments like FD’s or Debt Mutual Funds. And if Goal if f
All about Financial Planning and life Goals, ranging from Plan to Marriage, Buy a Home, Investments, Child Education, life insurance, Startup Funding