The power of saving: How small money-saving habits can lead to big financial rewards
₹10K per month at a 12% interest rate per annum compounded monthly. If you start at 25 years of age, the amount you’ll have by 60 is ₹6,43,09,595 versus if you start at 30 years of age, the amount of money you’ll have by 60 is ₹3,49,49,641. That’s how much difference a mere 5 years can make! It’s a small step, but the impact it can have - as you can see - is tremendous," said Satyajeet Kunjeer, Founder and CEO, Deciml.
Saving money also enables one to achieve long-term goals, such as buying a home, starting a business, or funding your children's education. Kamaljeet Rastogi, Chief Executive Officer, SahiBnk, Powered by Manipal Business Solutions said the benefits that follow from saving money extend beyond financial security. “Saving instills discipline and financial responsibility, helping people develop healthy financial habits that can last a lifetime.
It also provides a sense of empowerment and control over one’s financial destiny, reducing reliance on credit and enabling us to make informed financial decisions," Kamaljeet Rastogi For example, if a person saves just Rs. 1,000 per month for 30 years, earning an average annual return of 8%, their savings would have grown to over Rs. 12 lakhs at the end of the period.
This exemplifies the incredible potential of consistent saving and the compounding effect it can have on wealth accumulation. However, saving may not come naturally to everyone, and it is better to equip oneself with the right strategy. As per Kamaljeet Rastogi, individuals should compare the offers and returns on savings accounts when choosing a bank.
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