Saving saves thoughts and energies vis-à-vis time and resource. It’s the mother rather a woman who was the beginner in time immemorial to start the habit of setting aside a portion of their food for tomorrow’s contingencies. That’s the very start of savings in an implicit form. We need to save for a better tomorrow, a community to form an organised society and a nation to build a prosperous nation by accumulating savings to mobilise capital for investment. So, Savings is a key factor for microeconomic as well as macroeconomic prosperity in human life. Here, I put some economic verities of savings to understand savings in a non-economic way:

1) Saving is not deprivation, rather abstinence from present consumption in order to provide for larger consumption in future.

2) Saving can come from hard work and parsimony of expenditure. It is not possible to keep on living or prospering by putting one’s hand into another man’s pocket or in another nation’s pocket.

3) Saving needs wise spending vis-à-vis wise earning.

4) Saving gives us the teaching that the size of the coat is determined by size of the cloth.

5) Saving spreads the gospel of equity that one cannot take more out of a pot than one has put into it.

6) Saving suggests investment of borrowed capital in such a way that it creates its own means of payment i.e. it should be self-liquidating.

7) Saving proposes that taxation has its limits and should not reach to point of no-return, nor should it kill the goose that lays golden eggs.

8) Saving proclaims that if individuals, communities, and states spend more than they earn, a flash of prosperity will be followed by the long darkness of stagnation.

9) Saving reminds us that even no two families spend their money in exactly the same way. So, consumption patterns of richer nations must not be followed in poor countries as a matter, of course.

10) Saving is no longer residual of income. Economic history is a history of inflation. So, to save, one should not cut a bit of one’s income rather adjust it in daily expenses.


Save through LIC and ensure APC* in the long run since “The possession of an adequate amount of life insurance causes the average policyholder to eat better, sleep better, feel better and as a result of these, to work better.”

APC*:- Average Propensity of Consumption.