Saving
Earning, saving and expenses all are inter-related. If earning is constant, then saving is inversily proportional to expenses. It means in case earning is not changing, if expense increases, saving decreases and expense decreases saving increases.
People work hard to earn money by their job, profession or business for their future planning. But it is only possible if they save money regularly. They spend a portion of their earning on their immidiate need and rest put aside for future need. This process of put aside the money is saving. Therefore we can say that "the process to put aside a portion of earning for future need is called saving.
Need of Saving
The financial need of human can be fulfilled easily only by saving. These needs may be :
* Child education
* Marriage
* Buy a home
* Buy life insurance and health insurance plan
* Retirement planning
* Meet the need of emergencies
Advantages of Saving
If savings of people of country put together for investment, it create new capital for business, and will be helpful in development of business, industries, creating new jobs, greater production and it will also be helpful to overall economy of country. Therefore saving is helpful to savers in form of return on their saving as well as the country.