Saving money is one of the essential aspects of building wealth and having a secure financial future. Saving money gives you a way out of the uncertainties of life and provides you with an opportunity to enjoy a quality life. Putting aside a sum of money in a systematic manner can help you steer out of many hurdles and obstacles in life. It can support you in your hour of need and ensure that your family has something to fall back on in case of an unfortunate event. There are many reasons to save and several ways to save with ease.

Here are some of the important aspects of savings that you should know.

5 Reasons to Save Money

Long-Term Security

Among the many advantages of saving is the long-term security it provides you. The future is unpredictable, and financial emergencies can crop up anytime. Saving money allows you to create a safety net for your future expenses as well as unplanned financial needs. The more you save, the more peace of mind you have, as you are better prepared for anything life throws at you.

Saving money is a step towards financial independence

The importance of saving money cannot be understated when it comes to independence. Financial independence plays a critical role in making you self-sufficient. It helps you live life according to your preferences and comfort. You have the liberty and authority to spend your money on the things you like and live a comfortable and enriched life.

Saving money enables you to take calculated risks

Another reason why saving money is important is because it allows you to take calculated risks. When you have enough money, you can take risks like starting a business, changing professions and exploring your interests without the immediate pressure of generating income.

Savings Reduce Stress

Having adequate savings enables you to live a more fulfilled life. You are more likely to be less stressed about your future goals like retirement or unexpected expenses like healthcare. Savings allow you to be relieved and at ease, knowing you have sufficient funds to navigate different situations in life.

Compound interest can be benefited from savings

Savings offer you the opportunity to take advantage of the power of compounding. Compound interest is added to your initial savings at periodic intervals, such as annually. In the next compounding period, the interest is added not just to your initial amount but also to the interest previously earned. Over time, this helps you increase your savings and beat inflation.

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Tips to enable savings

If you are new to savings or find it difficult to stick to your objective of saving, then you can try the following steps.

Limit your credit card usage

Credit cards may provide a temporary sense of relief, but the high rates of interest can deplete your savings in no time. It helps to limit your debt and restrict credit card purchases to ensure that your savings are intact and growing.

Keep a track of your expenses

If you find it difficult to save regularly, try to record and keep a track of your monthly expenditure. This will offer you a clear picture of where you spend. You can then identify the things that are not important and aim at saving more by avoiding those purchases.

Create a budget for savings

It helps to devise a budget for each month. You can create a plan at the beginning of the month to target savings and set limits for spending. This lets you focus on what is important, reduces the chances of over-spending, and lets you save as planned.

Invest in long-term financial tools

When you save, it is also important to see your savings grow with time. Investing your money in a long-term investment plan can have many additional benefits. These plans offer a lucrative rate of interest that lets your money retain its value and beat inflation. One such instrument is the savings or endowment plan. The ICICI Pru Assured Savings Insurance Plan is a new-age endowment plan that is designed to address your life insurance needs.

Let’s find out more about this savings plan.

Why Choose ICICI Pru Assured Savings Insurance Plan?

ICICI Pru Assured Savings Insurance Plan is a new-age endowment plan that comes with the following benefits:

• Lump sum payout to secure your future: At the end of the term of your policy you will receive a guaranteed^$ lump sum payout as the maturity benefit which will help you secure your family’s financial future.
• Grow your wealth with guaranteed additions^#: Every year 9% or 10% guaranteed additions^# would be added to your policy depending on the term of your policy.
• Life cover^{^}: The plan also provides a lump sum payout to your family in case of an unfortunate event. This amount ensures that even in your absence your family members are able to live the life you planned for them.
• Get tax benefits^*: With this plan, you can enjoy tax benefits^* subject to the prevailing tax laws.

^$T&Cs apply

Savings is a vital component of your life. Most importantly you can also rely on savings for safeguarding your family’s needs and providing financial security in unfavourable times. But it is important to find an instrument that allows your savings to grow. Here is when a financial tool like ICICI Pru Assured Savings Insurance Plan comes into the picture and proves to be a perfect fit.

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