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5 milestones in your life that require heavy cash outflows, and how to save for them

By Finserv MARKETS - Aug 1,2019
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5 milestones in your life that require heavy cash outflows, and how to save for them

Introduction

The beautiful thing about life is that it keeps changing. That also means that as you grow up, it becomes necessary to take into account what life stage you are at and plan accordingly. When you get out of school, you start preparing for higher education. When you are all settled into your professional career, you look forward to getting married. The next milestone shows up in the form of family planning. From there on, your life revolves around your little one(s). To cater to the varying demands of each life stage, it is important that you plan in advance. Ask yourself some key questions – how are you going to finance your studies abroad? Do you have enough to take care of your growing family? How can you ensure you get a dream wedding? Where can I park my surplus funds to procure maximum return on investment? What is the best way to invest money? Which are the best investment options open to ensure my child is able to receive the best education and facilities? It is important to be mindful of your financial progress and align your efforts with the goals in a timely fashion. Let’s take a closer look at each of these life stages and ponder over the best way to provide for the heavy cash flows that characterize each milestone.

Education

When you have just stepped foot into adulthood, the first major financial step you take is regarding your higher studies. Often students seek the best education for themselves, and that means institutions and universities abroad. It is a big achievement – you have secured admission in an institution of global repute. However, the fees, boarding and lodging can total up to a significant amount. Usually, education loans are easily available to serve the purpose. In fact, if your parents have been prudent investors, they must have saved fixed deposits as a part of your future planning. You have two options – either use the fixed deposits or other return on investment that your parents have secured or use these fixed deposits as to procure an education loan against the fixed deposits.

Marriage

To begin with, there is a wedding. The bride and groom often have a dream of what their wedding ceremony should look like and in order to finance that dream, astute financial decisions need to be taken a lot in advance. Just like parents secure stable and assured returns on investment with fixed deposits for their child’s education, they do so for their wedding as well. In fact, since you have been working for a while now, chances are you also pondered over the best way to invest money. As anyone who plays safely around risks, you would seek the best investment options, but one which provides stability is fixed deposits.

You need to discuss with your future spouse how the finances are to be handled, set financial goals and determine how the expenses will be split. It can be a hard conversation but it will be worth it! Make a reasonable assessment of your wedding goals and align it with your overall goals. This might also be the time you decide what assets to procure, so a cumulative receipt from a matured fixed deposit, for example, could come in handy.

And remember, the wedding ceremony is just the beginning of your married life.

Birth of child or children

After tying the knot, building a family is the next big step. It requires careful financial security planning. A little planning can go a long way in helping you control your financial destiny.

You need to be able to provide for childcare, the child’s education and health-related expenses. It is also the perfect time to review your financial portfolio for insurance products. If you don’t have enough financial protection, now is the time to get yourself and your family covered.

Child’s Education

Just like your education required a financial assessment, so will your kids’. Again, in your hunt to find the best investment options with a high return on investment, you will come across a plethora of options like Child ULIP plans, fixed deposits, education loan, hybrid insurance products and other investment plans. If clubbing stability with attractive returns sounds appealing to you, you should go with fixed deposits as they keep your principal amount secure. Since the product is not exposed to the fluctuations of the market, it is the best way to invest money when you are not too fond of risk.

Retirement

In your golden years, you should not be worrying about your daily expenses. How can you secure a regular source of income? Moneyback plans and pension plans are a good option, but if you want to steer away from the ups and downs of the market, park your savings in fixed deposits. Finserv MARKETS facilitates competitive fixed deposit interest rates in India. Start with an interest rate starting from 8% which can go up to 8.95%. Finserv MARKETS brings to you fixed deposit rates for senior citizens that are as high as 0.35%, over and above the existing rates.

Conclusion:

At any point in time, make sure your portfolio has elements of both insurance and investment and that lie on the spectrum of risk magnitude.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere”!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522