SAVINGS PHILOSOPHY- 4 THE WORKS

Before I embark upon the options of savings and investments, I must clarify one thing.
In the previous 3 postings related to the subject - I have tried to stress upon fulfilling one's basic needs and obviating any risks in terms of health and wealth. No matter what is the quantum of investment or saving one makes.In case of any contingency in terms of life or property the dependents will be left in a lurch causing an outgo from the savings corpus.
Once all these are taken care of , then one must create a emergency fund equal to about at least 3 months of expenditure. This can be taken along with the SWEEP IN facility of a fixed (term) eposit offered by banks. This will allow you to earn a higher interest at the same time as enjoy the flexibility of a savings account.
Once all this has been taken care of then one can set off to the savings and investment phase.
I have taken this as last because this will require your maximum corpus and minimum attention.
No matter what one may say and what you read in the papers or watch on the idiot box. Investment is exactly that "INVESTMENT." - For future.
Before embarking on any savings/investment mode you must decide WHAT are you saving it for. e.g. For your marriage (if you are single), child education if married, home down payment, higher education of self or children or simply retirement.
Taking the last item (Retirement) as first I would suggest you start as early as possible.
This is because the earlier you start- the higher is the corpus that you will be able to build.