World Thrift Day 2023: How can you ensure more savings regularly? Here are 6 ways
The decline in net financial savings among Indian households has raised concerns for the government, as it may restrict the availability of funds for crucial capital investments. These investments play a pivotal role in fostering economic growth by generating new job opportunities and supporting the establishment of businesses.
There may be myriad reasons for families not being able to save much, thus, rerouting our minds to the need of being thrifty with our spending behaviour. The “World Thrift Day" is observed on October 30 in India and October 31 worldwide to remind people of the importance of regular and forced savings.
Several factors contribute to the recent drop in Indian households’ net financial savings. One primary cause is the escalating debt levels. Many Indian households have resorted to borrowing money to purchase homes, automobiles, and various consumer goods. The interest rates have witnessed a substantial rise over the past year, largely due to the ongoing adjustments in policy rates by the Reserve Bank of India (RBI). Consequently, this has left numerous middle-class households with less disposable income available for savings.
In addition, inflation has compelled numerous individuals to tap into their savings to cover their day-to-day expenses. Nevertheless, it remains essential for people to maintain a portion of their savings as a financial buffer to handle current financial obligations and to be prepared for unforeseen emergencies in the future.
Prioritising the growth of savings and making wise investment choices is crucial for individuals. Such actions can lead to expense reduction, income augmentation, and potential tax savings. Some essential steps to augment your savings include:
Crafting a
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