The Triple Threat | Article on Global Resession | Harsh Kumar
Savings
1. Savings
the stepping stone for Self-Reliance
R.Jayachandran
Social Development
Management Consultant,
Chennai
2. 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.
3. Purposes of Savings
The purposes of savings are different by the type of savers.
Individuals save for their future
Corporate organizations save for meeting the expenses of repairs
and maintenance and replacement of machineries and tools
Government saves for the infrastructural development.
4. 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)
5. 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.
6. 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.
7. 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
8. Savings vis-à-vis Debt and our mind
set
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
9. 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.