Savings : A Mindset That Needs To Be Developed First

In the vibrant and diverse economic landscape of India, savings play a pivotal role in financial planning and stability.

Renowned Indian economist Amartya Sen once said,

"Financial literacy is not just about understanding finance, but about translating that understanding into better financial planning and decision-making." — Amartya Sen

This blog aims to explore the importance of savings in the context of Indian financial planning, offering practical advice and strategies to enhance your savings,  serving as a guide to begin your personal finance journey.

Understanding the Importance of Savings

In India, where family and future security are deeply valued, savings form the backbone of financial planning. They are essential for managing uncertainties and achieving life goals

Creating a Personalized Savings Plan

Whether it’s saving for a child’s marriage, buying a home, or planning for retirement, having a customized savings plan is crucial. Tailor your savings strategy to align with your personal goals and income.

Example: Consider the case of Priya, a software engineer from Bengaluru. She allocates 20% of her monthly income to her savings, utilizing tools like recurring deposits and Public Provident Fund (PPF) to ensure disciplined saving.

Budgeting: The First Step to Effective Savings

Effective budgeting helps in identifying areas of unnecessary expenditure. Use budgeting apps like ET Money or Money Manager to keep track of your expenses.

Emergency Funds: A Safety Net

The COVID-19 pandemic highlighted the need for emergency funds. Aim to save at least 3-6 months’ worth of living expenses for unexpected situations.

Balancing Savings with Investments

Savings provide security, while investments offer growth. Diversify with low-risk options like fixed deposits and high-return choices like equity mutual funds.

Advanced Savings Vehicles

Explore advanced savings vehicles such as the National Pension System (NPS) and tax-saving instruments under Section 80C of the Income Tax Act.


In India, where economic dynamics are continuously evolving, a robust savings plan is not just a choice but a necessity. It's about making informed and prudent financial decisions for a secure and prosperous future.

Arth Nirmiti
Empowering India with financial literacy and expert mentorship for stability and wealth creation.

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