Why savings When I say save for a rainy day, it doesn't mean to save for a day when it is raining cats and dogs. What exactly I mean is, to save for that day when you couldn't go out of your house to work on account of your illness or your old age. On such unusual days also, routine household expenditure will prevail, as usual, immaterial of the fact whether you earned your wages for those days or not. In order to cover the expenditure of such rainy day's one has to 'save for a rainy day'.
At the same time, savings through investment is an essential factor because, it covers future eventualities in an individual's lifetime, or it helps him/her to lead a relaxed retirement life; as such, savings cannot be belittled at any rate.
Further, keeping the money idle without putting it into proper use will bring down the intrinsic value of money on account of price rise and consequent to inflation.
What is saving
Savings means, frugal spending or prudent spending. It is all-together different from becoming tight-fisted or stingy. In a way, it is, 'Need-based spending', where money is spent only on most essential commodities, without giving room for any unnecessary spending of even a single paisa.
Shakespeare explains affordable spending in the following manner-
'Costly be thy habits that thy purse can buy'
[Shakespeare, in his drama Hamlet, Act 1, Scene 3, Page 3, 70th line]
How to save and how much to save When a cook wants to cook a delicious mouthwatering dish, he would prepare such dish by putting all the required ingredients in proper proportion and would heat it, or boil it to optimum level as per requirement. Likewise, one has to follow certain principle to save money and to enjoy his hard earned money so saved at an appropriate time.
Savings can be done by practicing restraint over reckless spending on the worthless material, and by not spending on false luxuries. When an individual cannot afford the certain thing, on account of his limited means, he has to forego such extravagance' and start practicing financial discipline.
However, there are other ways to save money, without straining much.
People can purchase items of their favorite brand at a discounted rate, without compromising with the quality of the items-
Many big business houses, malls, forums, etc., will announce discount over prices of all items during special occasions like festival seasons, Independence Day and Republic day etc., and also some malls have fixed certain dates in the first week of every month to sell all provisions and other household requirements at a discounted rate. People can make use of such opportunities and save nearly 10-15% overall purchases they make during a month.
Some of the websites will issue discount coupons of many big business houses like Amazon, flip cart, Star Bazaar and other companies to their members, in lieu of points earned by them in their sites, people can join such sites and earn during leisure hours and can save money from such activity also.
The above tips are a couple of examples, only, if an individual brainstorm he can find many other ways by which he can save additionally, depending upon factors, where he works and the position he holds in his office etc. For example, railway workers will get a free pass to travel by train, and People of hotel industry get free food, and so on.
While investing the money saved, a person must be very careful. Because, there are many sharks and super con-men, who are waiting to swindle others money by keeping open their spurious companies by announcing an abnormal rate of interest over deposits kept with them.
A man with good income can spend more, and at the same time, he is capable of saving big also. Anyway, such big savings is very much required for such big bosses after their retirement, in order to continue to maintain their past social status after retirement also.
Whereas, a far-sighted sensible man, whether rich or poor, will always be very much cautious while spending on each item he purchases. He will always think twice in advance before buying any commodity, about its use of the commodity to him.
In a way, both savings and spending are directly dependent upon an individual's income. In other words, an individual's capability to spend more and save more depends on his affordability to spend and to save.
Distractions in the way of savings Nowadays, in the credit-card era, most of the people will be having multiple credit-cards in their wallet issued by different banks. Correspondingly, a number of malls and shopping complexes are enticing such credit card holders to make the best use of their credit cards and make purchases using their cards. Further, online shopping transactions by making use of credit and debit card by sitting in one's own house have also encouraged people to make use of the cards liberally.
Conclusion When a person doesn't want to live like a parasite on another's income and wants to lead an independent life after retirement also, savings is most essential. A person who has saved adequately will always be worry free about his future lively hood after retirement and also about the future exigencies that may meet head-on some day in future. Further, it is also very important, that safekeeping and investing the hard earned money till the date of retirement with reliable company requires a thorough consideration, before joining such company.
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