Savings and Investments are a crucial part of your financial planning. To do it the exact way that is the need of the hour, interacting with those who have experience is a must. WaysaheaD provides a facility for this interaction.
December 9, 2025
Savings and investment is a crucial part of your financial planning. To do it the exact way that is the need of the hour, interacting with those who have experience is a must. WaysaheaD provides a facility for this interaction.
Savings is a common activity that we all indulge in. It is the act of keeping excess money in a safe place for future needs. While it is beneficial in the short run, it loses out on the growth in the long run. Money kept in Savings seldom beat inflation. Hence, we advise our clients to keep only that portion of the money in savings which they feel would be required in near future. For the rest, we advise Investment and Insurance.
Investments, lets us grow our money in the long run and helps us create wealth.Hence it is for funding those events in life that can be predicted or that are planned. Thus we are aware of an approximate associated cost and time of the event.
Next step while Investing is to consider one's affordability. To give a simple analogy, we can reach Delhi from Mumbai either on foot, by car, by train or by flight. What we finally choose depends on our capacity to pay and the time we can expend in travelling. Similarly, to meet our financial goals, our investment choice also needs to take into account affordability, time and the target simultaneously. Next thing to consider is the investment's ability to offset Inflation in long run, along with other factors like Safety, Liquidity, Tax efficiency etc.
Unlike Savings, in Investments the return is neither predictable nor fixed. However, investments, if maintained for long run, is capable of offsetting inflation. Thus, for that portion of your money, which is needed for an event in the long run, Investments should be the preferred instrument than Savings. The limitation of Saving schemes are that the real growth in those after offsetting inflation and tax liabilities may not be enough to meet the desired goals. So we stress heavily on having an investmentcomponent in your finance plan instead of putting all funds in Saving Schemes.
We talked about Investments, which is meant to meet predictable needs in the long run. The characteristics of a predictable expense is that we know the approximate cost as well as the time frame. So it is possible to accumulate wealth by way of investing.
Life throws us all kinds of unpredictable events. Death, sickness, disability, accident are the few unpredictable events. For unpredictable events neither time nor cost can be estimated in advance. So unlike an investment, a planned accumulation of wealth is not possible to meet such unpleasant happenings. Moreover, expenses related to such events can neither be postponed nor negotiated. Further, no "Loan" offers comes to us in such situations. Here comes the importance of Insurance.
Insurance helps us secure our future against these unpredictable events. It is often misunderstood to be Savings or Investment because of prevalent mis-selling by insurance agents. Lack of awareness about Insurance has resulted in most of us buying expensive policies with insufficient coverage. Many others get misguided by the 'Tax Saving' associated with it.
Hence, it is very important to understand that you have the correct policy in hand. Insurance decision should be a carefully thought out one and not purely a tax saving activity. Insurance is a must in our portfolio, taking into account the severity of the unpredictable event more than its probability.
A good analogy would be - We all have seen that even with a Brand new car, a 5th Tyre is provided as a "Standby". Here the severity in case of a tyre getting punctured is taken into account than the probability of a new tyre getting punctured.
So irrespective of our present Strength, Wealth & Health, we all should have a proper Insurance cover for all uncertainities.
WaysaheaD strives to help you make better decisions in personal financial matters through its plethora of experience and case studies. Our belief in disciplined and proactive steps towards financial goals has helped us serve our clients interest to the best. Through a mix of 'Savings', 'Investments', 'Insurance' products, we help our clients build a portfolio that successfully caters to both predictable and unpredictable events in their lives. Thus, WaysaheaD assures its clients of the 'Quality of Life' that they desire. Our services includehelping the clients to visualise various scenarios in life and channel their finances to face the situations. This is followed by preparing action plan, implementation, related follow-ups and periodic review.
Savings is like storing water in an overhead tank. It is available for immediate requirements. But once emptied, it can't generate water on its own. It needs a bigger source like a well to replenish it.
Investments is similar to digging a well to secure water supply for your future. The water level in the well might go up and down periodically. However, in the long run, it remains a source of continuous supply of water.
Savings, like a water tank, gives an assurance of supply for a limited period. While Investments like a well acts as a resource for longer periods.
Savings and Investments are a crucial part of your financial planning. To do it the exact way that is the need of the hour, interacting with those who have experience is a must. WaysaheaD provides a facility for this interaction.
