Savings

Meaning :

Savings refer to the portion of income that is set aside instead of being spent immediately. It represents money stored for future needs, emergencies, or long-term

goals. Savings contribute to building financial security and provide a buffer against  unexpected expenses.

Example : 

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

How to Understand : 

Consider savings as money you allocate for your future needs.

Instead of spending all your income today, you keep some amount safe for later.

This saved money can be used for larger goals like travel, education, or purchasing  assets.

Importance :

Savings help build financial security and stability over time.

They provide assistance during emergencies when unexpected costs arise.

Savings support both short-term and long-term financial objectives.

They reduce dependence on loans for financial needs.

Savings serve as the foundation for future investments and financial growth.