Proven Tips to Manage and Monitor Your Savings Plan

Investing in the right Savings Plan can set you up for financial success, but simply investing isn’t enough. You must actively manage and monitor your Savings Plans to get the desired benefits. 

This blog will guide you through the best practices of effectively managing and monitoring your Savings Plans so you always stay in control and build lasting financial success.   

Setting Up Your Savings Plan

Defining Financial Goals

Start your financial planning phase by identifying what you are saving for and why. It will ensure you find the right Savings Plans for your portfolio. We recommend setting specific, realistic, and measurable financial goals as they will prevent unwanted frustration or financial strain. 

If you feel overwhelmed with this process, consider consulting a professional financial expert for personalised guidance. 

Choosing the Right Savings Strategy

Once you’ve identified your specific financial goals, explore a savings strategy that aligns with them. We believe there is never a one-size-fits-all approach, so always choose a savings strategy based on the nature of your goals, risk tolerance, and investment horizon.

For instance, fixed deposits, recurring deposits, and high-interest savings accounts are ideal for accomplishing short-term financial goals. They provide safety and guaranteed returns to people with a low-risk profile. 

Shriram Life Assured Income Plan (UIN: 128N053V05) is also a low-risk Savings Plan that helps policyholders accumulate wealth through systematic savings. Debt mutual funds, guaranteed Savings Plans by insurance companies, hybrid funds, etc., are better suited to fulfil medium-term goals. These instruments are recommended for people with a low to moderate risk profile.   

Tools for Managing Your Savings Plan

Budgeting Apps and Software

Budgeting apps and software play a vital role in helping individuals organize their finances. You can use it to streamline your budget management and identify areas where money can be saved or redirected to achieve financial goals.   

While numerous tools exist in the market, you can explore options budgeting apps. They’re intuitive, easy to use, and loaded with features that can help you monitor savings, performance tracking, and more. 

If you have multiple investments in Savings or Investment Plans, these tools can give you a bird’s eye view of all the investments, expected return, etc., on a single platform, assisting you to make informed future financial budgets.   

Automated Savings Tools

Busy professionals love using automated savings tools as they simplify their savings processes. If you find managing multiple Savings or Child Plans investments difficult, consider exploring tools that automatically transfer a predetermined amount from your account at regular intervals.

Several banks and financial institutions provide automated savings tools, such as Standing Instructions (SI), Auto-Debit Mandates, etc., to automate fund transfers to your chosen accounts. This automated transfer supports consistent savings without worrying about missing important payments.     

Monitoring the Performance of Your Savings Plan

Regular Financial Reviews

Since personal circumstances, financial priorities, and even the broader economic landscape can change over time, everyone should conduct frequent investment monitoring and review processes. These timely reviews will help you ensure that all your investments remain aligned with your changing financial needs and evolving goals. 

Tracking Investment Performance

Frequent investment monitoring and performance tracking are crucial for effective investment management, especially for market-linked plans. If you have mutual funds, Unit Linked Insurance Plans (ULIPs) like Shriram Life Wealth Pro Plan (UIN: 128L096V01), Equity-Linked Savings Scheme (ELSS), etc., in your savings portfolio, their performance will fluctuate based on market conditions.

Continuous monitoring and tracking will help ensure these investments yield returns in alignment with your expectations and risk tolerance. You can track the performance by evaluating key metrics, such as annualised returns, volatility, and benchmark comparisons of your investments. 

For instance, if you’ve invested in mutual funds, compare the fund’s performance against its category average or benchmark index to gauge relative performance. Those with ULIP investments can track the Net Asset Value (NAV) to assess how funds are performing in the market. 

The precise tracking method will depend on the investment product, so explore appropriate tracking methods.   

Adjusting Your Savings Plan

Adapting to Changing Financial Goals

Your savings strategy should evolve with time to accommodate changes in your circumstances or financial priorities. What seemed essential five years ago may no longer remain relevant after a few years. 

Regularly assessing Savings Plans and other investments like Protection Plans or Retirement Plans can help you stay on track with your financial aspirations. To adapt to such changes, we encourage individuals to redefine their financial goals every six months or at least once a year. 

You can then evaluate whether the existing savings and investment allocations are sufficient to meet the revised goals. These inputs will help you make appropriate changes to achieve the new financial goals. 

Responding to Market Changes

Financial markets are inherently unpredictable. Hence, always respond proactively to protect your savings and optimise returns. Your response should always match with your investment type. 

For example, if you’ve invested in market-linked savings plans, your portfolio may become overexposed to underperforming stocks in declining equity markets. In such cases, you can rebalance the risk by shifting funds towards more stable asset classes, like debt instruments or fixed deposits. 

Those with ULIP investments can use fund-switching options to respond to market dynamics. For instance, policyholders can shift to a low-risk debt fund during periods of high market uncertainty to minimise risk and move back to equity funds when the market stabilises. 

If you find it overwhelming, consider investing in a Savings Plan like Shriram Life Sunishchit Laabh, as it offers assured returns, regardless of market changes. 

Conclusion

Managing and monitoring your Savings Plans is an ongoing activity that demands constant attention and effort. While some people prefer to do it manually, using advanced budgeting tools and automated savings can streamline the process. You can use these tools for effortless financial planning. 

If you plan to invest in more Savings Plans to cater to your evolved financial needs, explore the wide range of Savings Plans at Shriram Life Insurance. We’re one of India’s leading insurance providers, offering a diverse range of retirement, investment, child, protection, and savings plans.