Being a Smart saver for good times forever – A personal story
Anupriya Singh - Momspresso
The pandemic came as mankind’s worst nightmare. The economy was tested, households shaken up and no one knows when these tough times will come to an end. January 2020 came as a milestone for our family as my husband found a job in our hometown, Dehradun. It had been 18 months that I had moved back to the hometown for our child's education and also started a small business to form a base here. We would now finally stay together as a family! We booked our tickets to Ahmedabad for the 1st of April to wind up the house in Ahmedabad and together we would be back in Dehradun in the month of May for him to join his office. The plan was all decided and we were excited.
March 22nd, the lockdown was announced and all our plans went for a toss. Soon, he was relieved from his present job and there was no appointment letter in hand from the new company. My café would remain closed till the government issued guidelines to reopen. There were salaries to given to the house helps and staff at the café despite the fact that they were at home. We decided not to make any payment cuts like many others and manage things, come what may. No salary for the last two months, a budding business that had come to a halt and no appointment letter in hand for the new job, things could have been quite stressful.
In such tough times, all that we could rely upon was our savings. Life can really surprise you at times, and this was definitely not a pleasant one. This was the time when our planning of all these years came to our rescue. We had money in hand for our expenses when there was no income. Though we have a complete household in Ahmedabad, we had to buy everything from scratch for our home in Dehradun. This had been a major expense but I have managed to set up a lovely house.
Things are getting back on track on the work front as he has settled well in his new office and my café is up and running once again. The child is enjoying his extended holidays and being with mamma and papa both, after a long time. Together, we had promised each other that we would make things work in the toughest of times. We were ready to face all the challenges and that has been possible because we always believed that always spend after you have saved for the future. If you are prepared, you can face the most adverse situations. So, we thought of sharing few of our learnings on how to plan your finances to effectively tackle any uncertainties.
- Use mental accounting: Since initially we were tight on money, we became disciplined savers. We labelled as per our expenses and physically separated our money. This allowed us to priortise how we spent our limited money and cut back in areas that weren’t important. The broad headers under which we saved our money were salaries, bills, tuition fees, groceries, luxury expenses (toys for kids, food from restaurants) and future expenses
- Identify new areas of savings: The restrictions set by the local government to contain the spread of COVID-19 has created unexpected areas of savings for many of us. House-rents have reduced. Gyms have been created indoors, movie halls have been closed for a few months now, no vacations for the next few months and due to less travel, transport cost has reduced too. We kept a tab of all these savings and have created an emergency fund for us. This is the much-needed liquid cash we wanted to keep handy for ourselves to tackle any out of the box expenditures
- Plan ahead: It is always wise to save money first and then spend. Make sure that you first keep aside a certain sum of money and then spend the rest of the income. In the earlier times, I remember my mother keeping aside a certain sum in a purse that was hidden in one corner of the almirah. I somehow never learnt from her and the money kept aside would also be spent. In the back of my mind, I always had the idea that I have a certain sum with me and I would end up using it. In life we have set goals for ourselves like retiring early and having a comfortable life post that, education of our kids in world class institutes and for all these goals we needed to restart saving in a planned and organized manner. Moreover, the pandemic highlighted the need to save enough for uncertainties. I needed a plan that would ensure that there is a particular amount that I have to save mandatorily. While I was researching on various investments options, I stumbled upon Assured Savings Insurance plan by ICICI Prudential Life which was a traditional savings plan. The best part about this plan was that one could pay premium on a monthly, Half-yearly or Annual mode and I having a business where cash flow isn’t certain, needed a similar plan. This is a very simple method with which every month I am saving a certain amount and in turn securing the future for my family. The plan yields a lump sum amount on maturity. A value of saving small amount every month added to the trustworthiness of a company like ICICI Prudential Life gives me the confidence to secure my family’s dreams and aspirations
- Teach children the importance of money: Even though my kids are quiet young, I have started inculcating the habit of savings in them as taught by my mother. I provide them pocket money every month and ask them to save in their piggy bank. On the piggy bank they stick a note on what they are saving for. These are their baby steps into goal-based saving
From my early childhood, I have been raised equal and I value equality in every aspect of life. Gone are the days when the males were the only breadwinners. With the women stepping out of the house to earn, it is now a shared responsibility. Cruising past uncertainties is now a joint responsibility. I am glad that I am doing that and teaching the same values to my kids. Uncertainties can come anytime, if preparation is right, there is no hurdle that can’t be crossed – Kyunki agar Tyaari sahi ho, toh jeet pakki hai.
Disclaimer
Guaranteed Additions (GAs) totaling 5% of GMB each year will accrue during the first five policy years if all due premiums are paid. GAs accrue on payment of due premium.
GMB will be set at policy inception and will depend on policy term, premium, premium payment term, Sum Assured and gender. Your GMB may be lower than your Sum Assured. GMB is the Sum Assured on maturity.
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