SAVINGS AND THE LIFESTYLES.

Nothing remains constant in this universe and changes do keep on happening without any breaks. Similarly, Life passes through various stages; childhood, adulthood, young age, and old age. For leading a comfortable life we need to generate good income, however without compromising with the principles of life. Our income too keeps on changing with the passage of time and similarly, our needs also undergo a regular change. To keep a balance between our income and expenditures, we need to make proper planning. Saving for all present and future needs such as daily household expenses, meeting any expense of some emergent nature, education of children, family outings for pleasure, marriages, building or owning a house, creating a pension fund for old age etc….etc., is therefore very urgent. For saving, we have to keep a balance between our income and expenses in such a way that there is always a surplus available every month.

Young age is the best period to save because we have the energy to work more and earn more and our expenses are comparatively less as compared to the advanced age. Our lifestyle has a correlation with our saving styles. We can increase or decrease our ratio of savings to our income by pursuing different lifestyles. It is as such advisable, especially for the youngsters to pursue a healthy and affordable lifestyle. The parents have the responsibility to teach their children as to how to imbibe good habits and encourage a healthy lifestyle, which would help them to use their income and resources in a judicious manner so that they could build their own portfolios for meeting any future needs and live a comfortable and peaceful life.

Everybody knows that our wants and wishes are unlimited whereas the income and resources are limited, so we have to strike a balance between the two in such a way that it always results in suitable savings. We have to use the principles of good Economics to manage our incomes and expenditures in a manner which assures good life and development without compromising with the basic needs of the family.

Although there has been more flow of funds in almost all the economies of the world and with that, the lifestyles of people have also changed. The new generation seems to have learned less about savings and managing the personal economy. There are market forces and techniques which lure the youngsters to the different lifestyles by providing them with more purchasing power, like credit cards of different types, personal loans against future salary, and finance for acquiring costly mobile phones, motorbike, car or any other item with the press of a button. Today’s market is seller’s market loaded with very attractive advertisements in print and electronic media. This is coupled with freely available purchasing power, that lures youngsters to gather junk and get trapped in never ending credit cycle. Their income is spent before it has actually accrued. The EMI’s eat away their income like a grasshopper. Unable to clear their credit card dues within the interest-free period, they are compelled to pay a very heavy interest and penalties which further add to their expenses.

One can save even with little income by managing the expenses in a manner that always ensures a surplus every month. Always prepare a budget before you spend. Note down every item of expenditure and analyse it at different intervals. It will give you a sense of your way of spending. You can mark items of wasteful expenses or those which have better and comparatively cheaper alternatives. There is no dearth of better alternatives. Cut all wasteful expenses and buy items for necessary use only.

Apparels, garments, and other items of daily use should be purchased in limited number because the fashion changes very frequently and better substitutes come on the market. Don’t buy just to store these items. These items simply fill your cupboards to be eaten by the termites. Please note that all items for good health and all beautiful clothes are much cheaper than items which spoil your health and presentation. Simple homemade food is cheaper and healthier than the junk food or food from the hotel or eateries. You may sometimes go for dining out, but very sparingly. we wear clothes to cover the body and also to look presentable. All such clothes are much cheaper than the torn out jeans which hardly cover 40% of our body and are very expensive.

Always understand the value of money and don’t spend just for the sake of spending; spending should always be purposeful and worth spending. you must have a vision in life for your future needs and accordingly, you should plan to save separately for every targeted future need. You have to decide your priorities and plan your savings accordingly.

Youngsters these days keep a bunch of credit cards just to ensure that they never fail to buy anything that they intend to buy. If one credit card fails to be a success, they try second, third and so on, till the transaction is successful. This attitude is ok in case of emergencies only but not otherwise. Such a misuse of your purchasing power without a supporting income will lead you to a debt trap, and once you are trapped a vicious circle sets into motion. One should not be a miser and compromise with his basic needs and qualities of good life, and at the same time, he should also not be a spendthrift.

Credit cards are a very useful financial instruments: the problem is with their misuse. They do provide purchasing power but not income. These should be used only to bridge gaps during some emergent circumstances, when you are short of funds for a short period and are sure to cover the gap from your income shortly. Credit cards these days are offered along with a lot of benefits attached to them like cash backs, bonus points and interest-free credit for some time. These freebies are in fact bait on the hook and once you swallow it, you can’t resist the pull of the string. The result may be a dangerous debt trap depending on your own lifestyle.

Just think of the time when you would grow old and get retired and suddenly you cease to earn. Who will support you? Do you think your sons will support you? They may, but not with grace. Why should you depend on others and make yourself miserable at the fag end of your life? The old age is the golden period of your life when you should be free from tensions and worries and live with respect and dignity.

SO, PURSUE A HEALTHY LIFESTYLE DURING THE YOUNG AGE, MEET ALL LIABILITIES, AND BUILD A SUITABLE PENSION FUND TO TAKE CARE OF YOU DURING THE OLD AGE.

Author: Kuldeep Kumar Sharma

I am an Ex-banker having 38 years of experience in different fields and capacities in banking and social life. I started the career at a very humble position and ended at a senior position of President of the bank.

8 thoughts on “SAVINGS AND THE LIFESTYLES.”

  1. Two lines of our holly book are quoted; “every living thing has to taste the death that has no calendar” and “The Almighty God” is responsible for ones Riziq”. Having a blind faith in these lines, your claim of savings is immaterial for “life”, but yes it squarely forms an important part for “Living”. The forms of your editorial on life and living are distinct to tone to the art of saving in world. I was in Dharamasthala Temple, Bangluru for a visit, where I was taught to make people understand both; “ The art life and the art of living” , For practicing them, they should learn the art of giving, means controlling of expenditure and they should understand that for their income & Riziq, the Almighty , Allah is a guarantee. So please do not take these lines/ comments against any sentiment, but be taken as my very personal view.

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    1. Thanks dear. Fully agree with ur comments that Allah is Razaq but He will provide Riziq for which we have to make effort and planning.The results are in His hands.This is the basic difference between humans and other races.

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  2. Another beautifuly scripted article. Till recently we the Indians were considered the most financially disciplined ones but the opening of markets and easy availability of credit facilities are contributing towards we being driven towards the financial indiscipline

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  3. A beautifully scripted article sir. The lure of easy credit available and the unseen debt trap has been mentioned in a lucid way. Savings and more savings has to be the key . The correlation of savings with age has been highlighted very well. Keep writing Sir ,,these are pearls of practical experience…

    Liked by 1 person

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