NEED FOR INVESTMENT : 

Savings is the surplus after expenditure from income in a particular period of time which may be a week, a month or a year. On the other hand, Investment is the process by which savings generally put into some vehicles like fixed deposit, recurring deposit, stocks, mutual funds etc to achieve our immediate, short and long term goal. Investment starts where Savings ends. Typically, people put savings in a savings account and distribute that savings in various investment channels.

Why we need Investment Planning? 

Without destination nothing can be achieved. So, just putting your money in savings account will not serve any purpose or can help you to reach your financial goals in different period of life.

Why wait a year for your money to start earning income?
It's usually easier to make smaller, regular contributions than larger ones once a year or every few years, and it can be financially beneficial. The younger you start, the more time compounding has to work in your favor, and the wealthier you can become.

Benefits of Saving Regularly

Compound growth :

There are two ways your money can grow: from your own regular contributions and from the accumulated growth of your earlier savings.

Convenient and Manageable :

Regular Savings provides you with the convenience of making small contributions to help increase your savings or ease the cost of investing one big lump sum each year.

Rupee-cost averaging :
A regular monthly contribution helps to reduce the average price you pay per unit over the long term for your investments.

Pay less tax during the year :
By making regular contributions throughout the year instead of waiting for a tax refund.

Apart from financial goals, the most important thing in financial-planning is investment plan.An investment plan is important because it creates a framework for every investment activity in which you will participate. It states what you will invest in, how you will invest,why you will invest, and what percentage of your money you will invest,and so on.In short, your investment plan significantly affects your investment returns.Frame an investment plan well and then follow it carefully.Your investment plan is a detailed description of all the major components of your investment strategy.

You can place yourself in a great position, if you frame a good financial plan.  It is normal and human to become isolated and depressed when we see our investments going down and there seems to be no answer.  No matter, with all that is going on with the economy, there is always opportunity's in the investment world. Even if the market is going up, down, or sideways, there is always money to be made

Investing even a small amount can produce considerable rewards over the long-term, especially if you do it regularly. But you need to decide about how much you want to invest and where. Investing in your financial future is the greatest gift you can give yourself by far. If you aren't sure where to begin or how, perhaps it's time to seek the services of a qualified financial advisor. His advice may prove invaluable and may give you a much more comfortable future than you would have ever imagined left to your own devices.  The financial planning advisor plays a very important role in the investment planning.  The important thing is to hire the service of a good financial planning advisor and at reasonable place.

Planning is not only a one-time event. It is a continuous process and may vary depending on many circumstances. Working with a professional financial advisor will help you to prepare for your future. You will have to come to the conclusion about what you are planning to do in those years and how you are going to have the money to make all of your dreams come true.

For example, if 20-year-old makes a one-time 5,000 investment and earns an average 8% annual return, and if he or she never touches the money, that 5,000 will grow to 160,000 at age 65. But if he or she waits until age 39 to make his or her single investment, that 5,000 would only grow to 37,000. Time is the primary ingredient to the magic that is compounding.

Compounding can be made more powerful through regular investments. If he or she makes saving a habit contributes 5,000 annually  for 45 years, and if he or she leaves the money to earn an average 8% return, his or her retirement savings will be over 19,32,000. This is the power of compound returns.