What is Saving?
Saving means setting aside of a certain portion of income to meet future financial requirements. Saving is what remains from income after expenses, which can be calculated as income minus expenses.
Saving = Income - Expenses
Saving is important for securing an individual’s financial well-being, achieve long-term goals and financial security. It also provides a sense of peace of mind.
It is often stated that “Don’t save what is left after spending, spend what is left after saving.”
Why We Save
There is no right time to start saving, the earlier we start the better.
Some key reasons why saving is important:
- Savings enable us to build an emergency fund to cover unexpected expenses, such as medical emergencies, business loss, etc.
- To meet financial goals such as buying a new house,to meet cost of higher education of children, planning for retirement and so on.
So, start saving today and take the first step towards financial freedom and peace of mind.