There is a saying ‘Easier said than done’. It is actually true in case of saving money also because talking about saving is very easy and getting it started rea...
Cost of Goal in year will be and Lumpsum Amount to be set aside today for reaching this goal will be
Monthly amount to be saved for achieving goal
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Yes, I know about the
But unlike you I also the reason why it didn’t Yes, I know about the
But unlike you I also the reason why it didn’t happen while it was very much possible.
Because, You had funds parked into your Bank FDs and you thought that’s enough to take care of your Goals.
Before I give you more gyaan on this, let me share some facts with you,
I am sure you have similarfinancial mistakes like some of the ones shown above. As a famous Station master once said in the Hindi movie, “Jab We Met”, - “life is like a railway track, a small deviation and the results are miles apart”.
Many of us do not plan well. We do not even write our goals. Because we do not do any of these things, thinking of reaching our goals is a wishful thinking. That would never happen unless a miracle happens. People may want to plan but financial calculations are not that simple. So people do not know what to do. Even if they come to know what to do, they are not financially disciplined to do what it takes to reach their goals.
While we cannot do anything about the second part, we thought of helping people by letting them atleast know how much they need to save to reach their goals.
If they come to know how much would something cost that they are planning for, like a foreign vacation & how much they should save monthly to achieve that goal, we are sure they will achieve this goal.
This calculator gives you the cost of your goal in the future date.
This calculator also tells you to set aside a lumpsum amount TODAY that will become equal to the cost of your goal in the future.
In case you do not have that kind of lumpsum amount, this calculator gives you the amount of monthly saving & investment you have to do to ensure that you are able to generate that amount to reach your goal.
This calculator lets you know where you stand today so that you can use the expert help of financial experts on the BankerBhai website &reach your financial goals in style, you may or may not worry about the investment plans your Bankers are so eagerly trying to sell you.
The use of this calculator is very simple. You just have to enter following things:
How much amount do you need for that goal in TODAY’s prices.
Enter the goal for which you want this amount. This is just for academic purpose.
Mention the year, say 2020, when you want to achieve this goal. Like going for a foreign holiday in 2020.
Inflation, a necessary evil. We won’t go into explaining why it is necessary but we have taken default value at 7%. If you feel costs would go up further than average 7%, you can increase its value in the financial calculator or vice-versa.
Till you reach the year when you want to achieve the goal, you are earning as well, so you mention how much return you think you would generate. It’s a future guess that has to be made still we have taken its default value at 12%.
Output – Output from this calculator is in 3 parts.
First, it gives you the cost of goal that it will become by the time you achieve it. This is calculated using the inflation rate that you have entered.
Second, it gives you a lumpsum amount that you can set aside TODAY that when invested, will become equal to the goal fund you need at the time you want to achieve your goal.
Third, because we all are not lucky to have this lumpsum of amount with us, we need to save monthly for the same. The last output of the calculator gives you the amount you need to save monthly till the time of your goal to arrive at the goal fund you need at that time.
You deserve a break. This calculator was really something. You may now relax by seeing some of the offers by our financial experts on BankerBhai.
Simple. Make power of compounding work for you in your favour. And, play as per the merit of the ball.
Power of Compounding – It is very difficult to explain it to non-finance people. The best analogy I can try is a simple game. If I tell you to give me 1 paise on Day 1 of a month and just give me double of that next day and keep on doubling every day. I mean, give me 1 paise on Day 1, 2 paise on Day 2, 4 paise on Day 3 and continue doing this for a month.
On Day 10, you will be giving me Rs.5, on Day 20 you will be giving me Rs.5000 but on Day 30, you will be liable to pay me Rs.53.68 lacs. Yes, that’s the power of compounding. Interest applied to your investments for a longer period generates these kind of mind boggling returns. The more the interest, the higher the mind boggling effect.
Play as per merit – INVEST more & go for more risk (invest in equities) when you are younger. People do complete the opposite. They SPEND more as they say they don’t have to save for anything. Plus their parents or friends ask them to invest in safe instruments like Fixed Deposits. Both things kill your money. As you keep on getting older, then depending on your goals, you have to invest in a mix of products. But beware, if your goal is very near say only 3-5 years away, you need to start moving some funds from equity to debt or balanced options. Get help of financial experts on investments on BankerBhai.
Use our ASSET ALLOCATION calculator to find out how to invest depending your age, goal & risk profile.http://www.bankerbhai.com/tools/asset-allocation-calculator
We have crorepati calculators that tell you how much to invest every month to become a crorepati, if you have fixed a time period to become a crorepati.http://www.bankerbhai.com/tools/crorepati-calculator2 or if you have fixed an investment amount monthly. http://www.bankerbhai.com/tools/crorepati-calculator
I would suggest mix of mutual funds to achieve your strategy of garnering funds faster. Particularly SIP (Systematic Investment Product) of Mutual Funds if used with expert guidance can really benefit you a lot. You can find best Investment Experts on BankerBhai.com
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