Topic 3: Start Saving For Goals In Advance

While Goals ring a bell for Child’s Education, Or your Travel Plans or any Asset you wish to buy, The jump in rates that you see today, to when the time comes could make you see stars in the day!

An international vacation that cost around 1.5 lakh to 2 lakh in 2017, is 3 lakh to 3.5 lakh today. Similarly, A domestic vacation that costed 50,000 in 2017, costs roughly 80,000-90,000 today. So, if two years back you planned to save ‘X’ amount, It is definitely ‘X+X’ or sometimes even more. It is better in such case to invest the money today considering a minimum of 6.5% - 7% in FD would sum up in for the next 3 years.

If you are planning to buy any asset, Say a Car or a House, As we all know that the prices are always increasing. And when planned to when bought, the rates have already bloomed and touched the skies!

Education costs tend to rise twice as fast as wholesale inflation. According to a survey of 2,000 families across 15 cities in India and found that the annual school education cost had risen from Rs 94,000 in 2011 to Rs Approx 2.5 Lakhs in 2019. Higher education costs are increasing even faster. Five years from now, the tuition fee for an engineering course, currently pegged at roughly Rs 15 lakh; would be close to Rs 20 lakh. In 10 years, it's likely to cost around Rs 30 lakh.

The only way to beat this jump is to start saving for your child's education early. A growing number of parents is doing that A Survey found that roughly 53% of parents started saving for their children's education before the child turned 3. Another 9% started even before the kid was born. That's good news, because the earlier you start, the more the time available for your investments to grow.

While saving for your child's future needs, make sure that you have taken adequate life cover. While a term plan is essential, you could also consider child plans from insurance companies. Unlike other insurance policies, a child plan does not end if the parent dies. Premium Waiver benefit is available in some child plan, benefits may vary from plan to plan. Contact your advisory for more details.  

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