Is saving really necessary?

Most of us are familiar with savings accounts offered by banks. As the name suggests, it is for us to save a part of money that we earn regularly. We put aside a certain amount for later use. It can be some specific use or for an emergency. A few transfer this to a term deposit when a significant amount is built up so a higher interest can be earned.

So, is saving really necessary?

I happen to see friends, who (at least when they were new to earning) used to spend up all that they earned. It’s that ‘honeymoon’ period with working for the first time and you get a handful (or account-full) of cash at the end of the month. In some cases, half the salary would vanish within the first week, after buying ‘stuff’. Credit cards too come into action later which makes things a bit more complicated. But the bottom-line is that the individual is enjoying by fulfilling all their needs for which they had to wait for quite some time. Is there anything wrong in that? No.

But this should not go on forever. One must not work under the assumption that the flow of income will last forever and everything will go according to plan. It won’t. Things change when moving out of parents house, getting married, dismissed from work, etc., There will be a sudden need for a higher income which one cannot find in a rush.

Savings helps here (unless you are loaded already or due an inheritance). Best way to save is to set aside a part of your income instead of the balance after spending.

The balancing act of spending vs. saving

While most argue that saving will sacrifice on what you spend now on improved lifestyle, fulfilling needs (not wants) and how short and unpredictable life is, a short-term mindset like this may make you pay in the long run. On the contrary, returns on investments from the savings will let you do do these gradually a few years down the line AND also have a savings fund. It’s important to find the right balance for your life.

The art is not in making money, but in keeping it. – Proverb

Life does not always come with constant recurrent expenses every month. There will be large expenses, both expected and unexpected that will arise from time to time. This is when most turn to debt. Thereafter pay down the debt, which again will shrink your purchasing power. It is never a good idea to take out a loan if it not used for something that will pay you back (unless it’s an emergency). If it is an urgent medical need, a loan may not be obtained in quick time unless expensive. As for having a wedding, taking a loan to spend for it, does not make sense at all. The list goes on, and will make you realize why savings is necessary.

Then we come to the point on what we should do with our savings. Well that’s a topic for another time.

So think of how savings matters to you (if it does at all), and how to strike a balance between saving and spending.

 

Where have all the patrol bikes gone? #sltraffic

During mid 2014, Sri Lankan policemen got 279 high powered bikes, reportedly costing Rs. 3 million each. Even before this there were patrol bikes. There would have been purchases after that too. But where are they to be seen now? Specially in Colombo?

Sri Lankan policemen stand next to their new motorcycles at a ceremony in Colombo, marking the official distribution of 279 high-powered units to traffic constables across the country

Source: http://blogs.ft.com/photo-diary/tag/sri-lanka/ ;Ishara S. Kodikara/AFP

 

In Colombo, we spot an occasional bike parked along the road and the cops waiting passively to catch wrongdoers, usually for running a red light and not stopping at a crossing. But given the number of vehicles on the roads in Colombo city, I expect to see more. In addition, I expect to see them ‘actively’ looking for wrong doers and making use of these bikes.

When you drive along and come across erratic drivers, you wonder how the passive cops are going to book them. If the bikes had been put to proper use, PATROLLING that is, more can be booked and some kind of order maintained.

But where are these bikes?

 

 

How To Become A Millionaire By Age 30

Source: Read more: http://www.entrepreneur.com/article/234454#ixzz3XfRJb9Ir

I found this to be a good read. Most, if not all, points of the author reflect my personal views as well. I hope to write something similar soon in my own words. Meanwhile…

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Money is yours but resources belong to the society

Yes, this will sound familiar – if you had read those posts quoting Ratan Tata (on Twitter) that had gone viral on social media. I searched though tweets of Ratan Tata (https://twitter.com/RNTata2000) and found nothing of that sorts, so I could not verify the source. The earliest reference I found was over 4 years old on Yahoo! Answers: https://answers.yahoo.com/question/index?qid=20110510040124AAtncNf

For all we know, this could be a hoax, but the message is worth it.

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Traffic in Colombo and the traffic cops

Traffic congestion is a nightmare in Colombo and suburbs during peak hours. It seems to have increased over the past few weeks due to some reason. Traffic along Galle Road leading out of Colombo can be seen even close to 9pm on weekdays. One reason could be the reduction on fuel prices which has led people to put more vehicles on the roads, which they left at home earlier.

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