Money Series: Part 11

By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group

Now the most important question, which is knocking at your brain, arises, – “If the above concept of ‘saving’ is contaminated then what is the correct meaning of ‘saving’? After all, what part of income do we consider as ‘saving’?

I am sharing with you today that the successful people of the world understood the meaning of ‘saving’ and according to which they worked and touched the infinite heights of life. According to all successful people and also me, ‘saving’ only has one definition:

“Savings are the part of the income which is kept safe first, and balance income is spent later on.”

In both the definitions, only a few words are rearranged, but when the earlier definition of ‘saving’ creates an unfavorable financial graph for you, the subsequent definition provides an asset step by step for you and creates a substantial financial graph. In the first definition, the words ‘liabilities, needs and expenditures’ are primary and after that, the concept of ‘saving’ has been conceptualized when in the second definition, the word ‘saving’ is primary and then the ‘liabilities, needs and expenditure’ have been emphasized.

Whatever income we have, ‘saving’ should happen first and the remaining amount should be used for fulfilling our liabilities subsequently. Some people may find this theory strange because according to them, their liabilities are high and the income is limited, and in this situation, if a portion of the income is saved, the remaining amount will remain even less, which cannot fulfill the obligation. My simple answer is that the vast inventory of your obligations is the only obstacle between you and your richness that you have created yourself. Our requirements always keep leaping but when will we be able to learn to leap out our income?

If you earn ten thousand rupees, the money will be less than your needs and if you are earning one lac rupees, again that amount will also be reduced to you. Even if you are earning one million rupees, this money will also cost you less. Remember – necessities always look forward to going above the line of wealth. When you were earning ten thousand rupees, you needed a bicycle; when you were earning twenty-five thousand rupees, you needed a bike; when you were earning one Lac  rupees, a simple car is your requirement, and when you start earning a million bucks, you probably will not be satisfied with lesser than a Mercedes car. Have you noticed this strange? As you imagined your increased income, the level of your need also increased accordingly. This common tendency of life will push you back because each of your ‘additional income’ merges into your increased need.

You must always have the option of “additional income” for making the wealth. If you have only one source of income, then you should keep a portion of the same income, not less than twenty percent of your income at least, in the form of your savings. If you save twenty percent of your income every month regularly, then at the end of the year, you can lace up the lace of your richness for three months, as we have understood in the last halt “Lace of Richness.”

We have seen that we have two definitions of ‘saving.’ The first definition is approved by the almost ninety-seven percent people of the world who have a negative view of the average and often financially backward and dejected, while the second definition is adopted by three percent of the world’s successful people. I understand that a comparative study of these two definitions will make the subject completely clear.

COMPARATIVE STUDY OF DEFINITIONS

Tarun Prakash Srivastava

[From my book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money  and in Hindi at http://bit.ly/साइंस-ऑफ़-मनी  ]