{"id":2844,"date":"2021-05-13T18:06:27","date_gmt":"2021-05-13T18:06:27","guid":{"rendered":"https:\/\/enorcerna.com\/wiki\/definition\/saving\/"},"modified":"2021-05-13T18:06:27","modified_gmt":"2021-05-13T18:06:27","slug":"saving","status":"publish","type":"post","link":"https:\/\/enorcerna.com\/wiki\/definition\/saving\/","title":{"rendered":"Saving"},"content":{"rendered":"
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\nSaving is the portion of income that the individual decides not to use today for consumption. So, you reserve that capital out of any risk to cover a future need or contingency. It can even be left as an inheritance.<\/strong><\/span><\/p>\n

<\/p>\n

That is, saving is the percentage of income that the person does not spend or invest. Thus, seeking to have a fund for a disbursement that must be made later, for example.<\/p>\n

Saving is a very important element of a family, but it is only achieved through good estate planning. In many cases it is necessary to go to a financial advisor. <\/p>\n

It should be noted that not consuming in the present represents an opportunity cost. Therefore, a certain risk is being taken. It may happen, for example, that the product that the individual wanted to buy with his savings later runs out on the market.<\/p>\n

Another point to note is that in many cases families cannot make ends meet, that is, they spend all their income. We must take into account that the cultural element influences. Thus, there are savings-oriented countries such as Japan, and other more capitalist nations with a greater tendency to consume such as the US <\/p>\n

The ideal situation is, perhaps, a combination of savings and consumption. Without the latter, the economic activity of a country would be paralyzed and very negative effects that we already know could be generated, such as unemployment.<\/p>\n

Many financial entities offer long-term savings assets associated with fixed income and variable income such as pension plans or retirement plans. These are periodic savings programs, some of them with tax advantages that encourage their hiring.<\/p>\n

Classification<\/h2>\n

There are mainly two types of savings:<\/p>\n

    \n
  • Public savings: <\/strong>It is that saving that comes from the structures of the State. Its purpose to cover future provisions against possible unexpected situations that have to lead to significant public spending. For example, the burning of a forest, the breaking of a dam, very heavy rains that destroy a town, etc. In addition, public saving is very important for the social welfare state. We refer, for example, to retiree pensions.<\/li>\n
  • Private savings: <\/strong>It is the savings of families. This can become null due to structural problems such as unemployment, deflation (reduction) in wages or the rise in prices of basic goods.<\/li>\n<\/ul>\n

    In conclusion, we can say that saving is very important. Thus, in order for it to occur, economic planning based on the possibilities of each person is necessary. Similarly, it is important to mention that excessive use of credit or excessive indebtedness is not good.<\/p>\n

    Difference between saving and investing
    <\/h2>\n

    On the one hand, savings is the money that we keep to be able to use it in the future. We renounce spending it in the present, putting it in a safe and risk-free place, but which usually generates interest. We are saving when we keep our money in cash or when we deposit it in a bank account, for example.<\/p>\n

    On the other hand, we call investment to that money that we give up spending in the present so that in the future it will provide us with extra income. We associate the investment with the purchase of a good or a financial asset, in the hope of obtaining a return. <\/p>\n

    This extra profit that the investment brings us is due to the fact that we are risking our assets, and for this we receive compensation. <\/p>\n

    We can invest our capital in a myriad of things, from something immaterial like education to financial assets like stocks, bonds or mutual funds.<\/p>\n

    See full entry difference between saving and investment.<\/p>\n

    <\/p>\n
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    Saving is the portion of income that the individual decides not to…<\/p>\n","protected":false},"author":1,"featured_media":2845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-definition"],"_links":{"self":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/2844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/comments?post=2844"}],"version-history":[{"count":0,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/posts\/2844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media\/2845"}],"wp:attachment":[{"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/media?parent=2844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/categories?post=2844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enorcerna.com\/wiki\/wp-json\/wp\/v2\/tags?post=2844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}