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All Days Are Not The Same, Save For A Rainy Day!

Piggy Bank - Save

The excess money left with a person after meeting his basic necessities like food, clothing and shelter is savings.The concept of saving was introduced to us at a very young age

One of the things that comes to our mind when we hear the term Savings is a piggy bank. Each one of us would have owned a piggy bank when were kids and loved to hear the sound it made when the coins clinked after we shook it. When I was a kid I developed a sudden, but a short lived, interest in saving because I was gifted a unique piggy bank which was a house with a Dalmatian in it. It would peep out of the door collect the coin at the doorstep and go back inside to deposit the coin inside the house. From colourful attractive clay piggy banks to the ones mentioned above, all of these were made to grab a child’s attention and to make them cultivate the habit of saving. The savings we made were usually from the money we received from our parents. Our parents would either give us coins or smaller amount of money. As kids we had two options either spend that small quantity for a small candy or save the same and buy a big gift in the future.

Ant

I’m sure everyone has read the story of ‘Ant and the Grasshopper’ while growing up or our mothers or grandmothers would have narrated the story to us. The Grasshopper relaxes during summer while the ants collect extra food as a reserve for monsoon and winter subsequently. During the harsh weather conditions the ants don’t have worry as they have food in their reserves to help them survive the change in weather. The Grasshopper who did not have any such reserve had to rely on the ants help to survive the winter. As we grow up we slowly forget the moral we learnt from the story. We fail to realise its relevance in our lives even after we are fully grown up.

The above instances in our lives were meant make us realise the importance of saving in our life. As we grew up we lost interest in saving and our expenses also increased – A new movie to watch, Dinner with girlfriend, a gift for friend’s birthday or any such occasion. We need to bring back the idea of saving in our lives as it is the first step in making a person financially secure, independent and strong.

Why save and have a savings fund?

Future is uncertain and no one can be one hundred percent sure about what is going to happen in the future. The money saved can help us sustain an emergency in the future by providing financial support. A major expense may arise in the future. A savings fund always helps and provides a cushion or a safety net during a fall. Had the Grasshopper saved some food he would not had to beg or borrow from the ant.

“Saving for anything requires us not to get things now so that we can get bigger ones later.” A new interesting product that might come into the market in the future will still be affordable because of the money in the savings fund. As kids had we skipped having candies for a few days we could have bought a toy with the money saved.

Retirement – If a person intends to retire someday the amount of money he would have kept aside in his savings fund can help him as he won’t have a source of income anymore. “Save your money. You’re going to need twice as much money in your old age as you think.” – Michael Caine

Saving disciplines a person financially and it also relieves him of huge stress as he in control of his finances.

INCOME- EXPENSES = SAVINGS instead of INCOME – SAVINGS = EXPENSES

“Don’t save what is left after spending, but spend what is left after saving.” – Warren Buffet. It really important to have a budget in order to achieve the goal of savings. We need to plan our expenses and spend on what is required eliminate those variable expenses that are not important. Purchase cheaper goods which serve the required purpose, compare costs before buying, stop spending on one expensive item per week or make use of coupons or take benefit of cashbacks and discounts – these measures can be implemented to reduce our costs and increase our savings. Prepare a budget on a periodical basis e.g. monthly, annually or quarterly. At the end of every period review your budget and analyse your expenses.

Once such discipline is followed you have taken your first step towards achieving your financial goals like security, stability and independence. All days are not the same, save for a rainy day. When, you don’t work savings, will work for you. Save,Insure and Invest for happy future !

 

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