Savings

Meaning :

Savings are defined as the portion of income that is deliberately set aside instead of being spent immediately. This money is stored for future needs, emergencies, or long-term financial goals, contributing to financial security and providing a buffer  against unforeseen expenses.

Example : 

For instance, consistently setting aside ₹2,000 every month in a bank savings  account for future use exemplifies the practice of saving.

How to Understand : 

Think of savings as a way to invest in your future self.

Rather than spending all your income today, you reserve a portion for later needs.

This saved money can help you achieve larger goals such as travel, education, or  acquiring significant assets.

Importance :

Savings are crucial for building financial security and stability in life.

They provide essential support during emergencies when unexpected expenses occur.

Savings facilitate the achievement of both short-term and long-term financial goals.

They help reduce reliance on loans for major purchases or expenses.

Savings lay the groundwork for future investments and financial growth.