Savingsthe stepping stone for Self-RelianceR.JayachandranSocial DevelopmentManagement Consultant,Chennai
Savings Setting aside a portion of current income is called as Savings Savings is a conscious decision made for the requirements of future Savings is made by individuals, corporates and Government.
Purposes of SavingsThe purposes of savings are different by the type of savers.Individuals save for their futureCorporate organizations save for meeting the expenses of repairsand maintenance and replacement of machineries and toolsGovernment saves for the infrastructural development.
Individual and Household Savings Savings is the starting point of the individual economic improvement plan Savings is an acknowledgement of an individual taking responsibility for self and dependents Habit of regular savings results in economic confidence and gradual decrease on the higher dependence on others(people, institutions and subsidy schemes)
Savings-a reliable Safety net It is both for Planned(education, marriage) and Unplanned (health, death) expenditures A handful save for retirement In both the cases, Savings provides a safety net and thereby the much needed economic security for the households.
Savings- the lever for Progress Regular Savings serves as a Wealth building tool (pooled money used for acquiring productive assets, redeeming assets) More money is needed to keep the same standard of life in view of the ever escalating inflation and its repercussion on essential commodities and services. Regular Savings , in the long run helps to increase the standard of living (increased purchasing capacity arising out of the productive use of accumulated savings) Regular Savings helps the household to get relived from the debt trap.
Savings-the trends The pattern of Savings is diversifying from traditional investment in to Gold to Savings in Banks, Post Offices, Insurance and Mutual Funds The regular Savings is turning out to be a gateway for institutional credit
Savings vis-à-vis Debt and our mindset Lack of habit of regular savings is one of the prime reasons for debt-trap of common people Waiting for ever evasive ‘’more income’’, to start saving money is the impediment
The positive Action for Savings Set aside at least ten percent of the current income as savings Gradually start increasing this percentage Save money to build the economic confidence, security and self-reliance.