How to Use this Savings Calculator

This Calcu Appp Savings calculator is a calculator to get you started on financial freedom journey. It is a simple calculator that gets you an estimate of how much you can yield from you savings at your retirement age.

Here are the terms used in this calculator:

1. Initial Deposit: This is the amount you have in your accounts at the start of your savings.
2. Monthly Deposit: This is the monthly contribution, you are willing to make each month for the rest of the years
3. Interest Rate: This is the interest rate you expect to earn, on your savings. Although this is not gauranteed, 6.5% - 8% is a good estimate
4. Investment Period: This is the time period you are willing to save for. This is usually the years left for your retirement from now

What are different types of savings?

There is no one perfect savings plan for everyone. Here are some of the most common types of savings plans:

How Much Should I Save Each Month?

If you don't know how much you should save each month, you can lean into the budgeting rule called "50/30/20 rule".

It means you should spend 50% of your savings on your needs, 30% on your wants and 20% on your savings.

If this sounds too complex, you can use your own budgeting rule. The key is to save as much as you can.

How to Save Money?

Saving money is a necessary habit to build. If you are not aware of your spendings and savings, you can never be financially free.

Here are some tips to save money:

1. Track your Expenses: Always keep a note or spreadsheet of your expenses(every month). This will help you understand what you are spending on and where you can eliminate those expenses.

2. Create a Budget: Monthly Budgets are a great way to track expense. You can always estimate what your expenses on grocery, rent, and utilities are. Few bucks up and down are fine. But always try to stick to your budget

3. Automate Your Savings: In your mobile banking app, you can automate your savings. Decide a fixed amount to save every month and automate it. Even if you forget, you are still saving

4. Invest: At first, work for money. Then, make your money work for you. You can multiply your savings by investing in stocks, mututal funds. Before investing, calculate the risk and return. And then invest.

5. Avoid Impulsive Buying: Sometimes, you think of buying something and realize you don't need it. Avoid such impulsive buying habits.