How important are the savings at the beginning of your career?

The famous American author John Poole once said: You need to learn first how to save and how to spend later. But, unfortunately, people in India are not aware of the benefits of saving or not aware of the repercussions of not saving. A 2015 HSBC study found that Indians are not good at saving and that 47% of the workforce has not started saving yet, which is still higher than the world average (46%). In addition, the report also indicates that almost 44 percent of workers in the country are saving money, but not on a regular basis. The scenario is even more devastating if we look at the saving habits of the young workforce. Excessive optimism syndrome Young people do not see the future with pessimism. They do not consider that the economies of the countries can fail or that their skills will be irrelevant, depriving them of work, or a similar undesired adverse scenario. New gadgets, the best television for a better experience and high-end clothes have become the medium for many young people. For others, travel and leisure are a priority. All these hobbies or lifestyles are at the expense of high expenses. However, others need a large amount of money to take corrective measures to improve their careers after taking a course at an expensive private university, not studying enough during the course and finally getting a stressful job. So a new degree in an international university is in their minds and that too without a return to their parents for money. With all these things that play in the minds of young people, any long-term savings is a distant thought. Only the savings help you in a crisis the emergency can happen at any time and to avoid coming out of the crisis, you must have plans and measures . If you follow both, the result will be a “saving”: the optimal antidote for each crisis. Money is not destiny, but it is the main cause of changes in destiny. Money not only serves to buy goods, but also provides happiness at the same time. Even the world economic center, the United States, could not avoid the crisis of the recession in 2008 “2009, just because of the habit of excessive consumption among young people.Many have fallen prey to depression and many of them have committed suicide due to a Unexpected financial crisis in life, but those who have saved money could survive the storm safely and successfully. Today Saving is investing tomorrow Several studies suggest that people who start saving between 20 and 30 years enjoy a more comfortable and peaceful life in the world, old age, that is, after retirement age Excessive consumption is a disease that spreads the pandemic for millennia, and its dramatic impact will become more evident after 2030, when Gen-Y’s maximum population will join the Sixty Club. Behavioral, this problem occurs due to lack of self-control and discipline when people They can not anticipate their future needs and long-term goals. Apparently, the problem seems reasonable, but if we study the causes of the global economic recession in 2008-2009, then it is the root of the whole crisis and the economies of the PIGS are still dealing with the consequences of the Great Holocaust. There are cases in which a child sold his kidney to buy the latest smartphone, it is the height of irrational consumerism. This type of behavior is not only detrimental to people, but it is quite devastating for long-term companies, when the supply will exceed the demand and the prices will fall gradually, which will cause a stock market collapse and another. terrible recession p Saving saves the future Consumption is a function of income and investment is the byproduct of savings, there must be a balance between the two. High incomes lead to an increase in consumption and a proportional increase in saving, but when savings decrease, investments decrease simultaneously, causing a large gap between supply and demand, the sudden rise in prices and finally inflation Now, in response to market demand, companies are acquiring higher interest loans from financial institutions, but at that point, consumers are adopting a conservative buying behavior, demand is decreasing and supply increases> One cycle of individual earnings changes continuously with age; zero in the adolescent, positive during the first years of employment, in the peak between 40 and 50 years and begins to decrease after 60 years. If one hesitates to save money during the greenest phase of life, then the scarcity of resources becomes apparent in old age when an individual is healthier and efficiency becomes weaker and weaker each day. That is why a sensible person spends money rationally and intelligently saves money to secure his future. (

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