Personal Finance


Take small steps today

13 Jun, 2014

"There is no greater Harm than that of time wasted."
~ Michelangelo

We are all aware of the artistic genius that was Michelangelo and his most beautiful piece of work: the Sistine chapel in Rome.

Before you think there’s no link of him to money, let me assure you there isn't; but for this beautiful quote of his that cannot emphasise more the value of time.

I've often heard friends /clients say " I'll start saving once I get married, I'll start saving once I'm 30, I'll start saving once the sun rises from the west " etc.. The excuses are many.

The only thing that one is hence losing is time.

Let me explain it in a crude manner :

1. Monthly savings: let's say I think 3000 is too small an amount to save every month and I shall wait once I have a lakh or so to start saving. In a perfectly sensible scenario I would start saving 3000 rs a month which translates to 36,000 annually and with a small interest component could mean a saving of 40,000 a year. Yes, for a large part of people 3000 rupees means one weekend exp/ or one trip to a High street fashion store. The perfect Time to start monthly savings is now ! This has nothing to do with age / timing etc. the perfect time to start is today, no amount is too small!

2. Cost of insurance: the cost of a term insurance for a perfectly healthy male of 27 for a sum assured of 1cr is around 13,000 ( offline insurance ) , while this person chooses to wait and takes an insurance at 31 once he has fixed that date for his life to change the cost of the same insurance is around 20,000 rupees. In the scenario that he got a high BP/ diabetes (yes, these days you get at even such an early age) in this period of 4 years he will be rated up on the policy and his premium increased.

It is imperative to start saving when you are young so as to insure yourself from all future risks. It Is a very simple and logical way to progress and I've tried to put it very simply . It is small changes that we do in time that make sure we are well protected .

“If you never did, you should. These things are fun and fun is good”.
- Dr Seuss

Dipika Kalra - a Business Management Graduate in Finance and an Associate Financial Planner with 6 years experience across the field of Personal Finance. Experienced trainer and orator has conducted several work shops at various corporates and colleges . With passion of connecting in people,  brings her great joy in making money more conversational and simple to understand.

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