savings and investment:The path to financial freedom

Savings & Investments: The Path to Financial Freedom

According to a recent report by the Bank of America Institute, "Gen Z is spending heavily on expensive travel, subscriptions, and outside food. This trend is pushing many young people toward financial illiteracy".

Our parents and grandparents believed in saving and investing in land, gold, and other long-term assets. But today, saving has taken a backseat-and that's a big concern.

To build a better future, our generation must understand the power of savings and investments. Even a student can start small. For example, if a student invests just Rs.500 per month in a mutual fund (MF) with a 15% annual return, the long-term results are amazing:

Duration	Total invested	Future value	Return
10 years	60,000	1,38,708	78,708
20 years	120,000	7,85,108	6,65,108
30 years	180,000	37,20,304	35,40,304

As you can see, starting early-even with small amounts-can help you become financially free.

During the pandemic, millions of families went bankrupt. But wealthy people weren't worried-they treated lockdown like a vacation. Why? Because they had planned for the future through savings and investments.

This shows how important it is for middle and lower-income families to start investing. You don't need lakhs of rupees to begin-just a few hundred can be enough if you stay consistent over time.

ü  Tips to Get Started:

Ø  Track your spending and savings: Keep a daily account of where your money is going.

Ø  Start small: Begin with Rs.100, Rs.500, or Rs.2,000 per month.

Ø  Invest smartly: Choose options like Mutual funds, ETFs, Gold, Bonds, Fixed Deposits, Commodities, or Land-based on your goals and risk level.

 

A Powerful Quote to Remember:

"Money says, if you save me today, I will save you in the future."