Savings Calculator

Aim to save at least 20% of your monthly income. If you earn ₹50,000, save ₹10,000. Start with whatever you can afford (even ₹1,000) and gradually increase. The key is consistency. Many financial experts recommend the 50-30-20 rule: 50% needs, 30% wants, 20% savings.

Compound interest is 'interest on interest.' Your savings earn interest, and that interest earns more interest. Over time, this creates exponential growth. Example: ₹1 lakh at 8% for 20 years becomes ₹4.66 lakhs with compound interest vs ₹2.6 lakhs with simple interest - that's ₹2 lakhs extra!

Build a small emergency fund (₹25,000-50,000) first, then focus on high-interest debt (credit cards, personal loans). After clearing high-interest debt, balance between saving and paying moderate-interest loans (home loan, education loan). Never skip emergency fund completely.

With ₹10,000 monthly savings at 12% annual return, you'll reach ₹1 crore in approximately 23 years. Increase to ₹25,000/month and reach it in 14 years. Start with ₹50,000? Just 9 years! Time and consistency are your best friends. Start early.

Savings accounts: 3-4%, Fixed Deposits: 5-7%, Debt Funds: 6-9%, Equity Mutual Funds: 10-15% (long-term). Conservative estimate: use 6-7% for calculations. For aggressive goals with market-linked investments, 10-12% is reasonable over 10+ years.

Both have benefits. Monthly saves (like SIP) work for salaried people, create discipline, and average out market volatility. Lumpsum works if you have bonus/inheritance and market timing is favorable. Best approach: Start monthly SIP, add lumpsum whenever you get windfall income.

Start small - even ₹500/month matters. Cut one unnecessary expense (₹200 coffee subscription). Cook at home. Use public transport. Avoid impulse buys. Increase savings by ₹100 every month. As income grows (even ₹1,000 increment), save 50% of increment. Small, consistent steps create big results.

Saving is keeping money safe with minimal risk and returns (savings account, FD). Investing is putting money in assets for higher returns with calculated risk (mutual funds, stocks). Save for short-term and emergency fund. Invest for long-term goals. You need both for complete financial health.

Maintain 6 months of expenses for salaried employees, 12 months for self-employed. If monthly expenses are ₹40,000, keep ₹2.4-4.8 lakhs. Keep it in liquid instruments - savings account, liquid funds, or short-term FDs. Don't invest emergency fund in equities or locked-in products.

Yes, but with penalties. Banks typically charge 0.5-1% penalty on interest rate and may levy processing charges. RD premature withdrawal rules vary by bank. For emergencies, okay to break. Otherwise, plan FD/RD tenures carefully. Keep emergency fund separate to avoid breaking fixed deposits.

Set visual goals (photos of house/car you want). Use apps to track progress. Celebrate milestones (saved 1 lakh? treat yourself ₹500). Make it automatic (auto-transfer on salary day). Find accountability partner. Join savings challenges. Remember: future you will thank present you!

Don't: Keep all savings in regular savings account (low returns), skip emergency fund, invest aggressively for short-term goals, withdraw prematurely, follow others blindly, time the market, keep savings idle (inflation erodes value). Do: Diversify, match investments to goal timelines, review quarterly, stay disciplined.