Frequently Asked Questions
A savings plan provides a clear roadmap with a defined target and timeline. It helps you move from vague aspirations to a structured, actionable plan.
The “time value of money” is the concept that money today is worth more than the same amount in the future. This calculator uses the discount rate (in the form of inflation and return) to account for this principle, giving you a more realistic savings target.
Simple saving is a habit, while goal-based saving is a strategic plan. It gives your money a specific purpose, making it easier to stay motivated and avoid unnecessary spending.
Be conservative. Look at the historical returns of the type of investment you plan to use (e.g., FD rates, mutual fund returns) and use a slightly lower figure to protect against market volatility.
The longer your time horizon, the more time you have to save and the more you can benefit from compounding. A longer timeline will significantly reduce the amount you need to save each month.
Yes, it’s an excellent tool for retirement planning. By entering your desired retirement corpus, current savings, and a long timeline, you can get a realistic idea of the monthly savings needed to secure your future.
The tool is designed for scenarios with a positive or neutral rate of return. If your net return (after fees) is negative, your required monthly savings will increase significantly, highlighting the importance of choosing cost-effective investments.
