The importance of savings for the common people has been explained here

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.