Savings

Meaning :

Savings are defined as the portion of income that is intentionally set aside rather than expended immediately. This accumulated money serves to address future   needs, emergencies, or long-term financial objectives, thereby enhancing financial  security and creating a buffer against unforeseen expenses.

Example : 

For example, regularly setting aside ₹2,000 each month in a bank savings  account for future use illustrates a disciplined approach to saving.

How to Understand : 

Conceptualize savings as an investment in your future financial well-being.

Instead of consuming all your income in the present, you allocate a portion for future  requirements.

This saved capital can be utilized for significant goals such as travel, education, or the acquisition of assets.

Importance :

Savings are essential for establishing financial security and stability over time.

They provide critical support during emergencies, mitigating the impact of unexpected financial burdens.

Savings facilitate the attainment of both short-term and long-term financial aspirations.

They reduce dependence on loans for financing major expenditures.

Savings form the foundational base for future investments, fostering financial growth and stability.