March 8, 2015

Saving the Welfare of the Future


Some of the economists now a day are pushing for a consumption based economy. They believed that at present, the best thing to do is to urge the consumer to spend in order to better-off the economy. Yet, they forgot that saving is the key for the welfare of the future.

Imagine if you save now, yes you are sacrificing your wants (I wanted to have these things…) for future; what would it look like in the future? Imagine if you did not save; what would it look like? Do you think if you save now, your children will have a better life? Do you think if we save now, unemployment will no longer be the word of the future, but would be replaced by a question, what businesses would be built? Yes, saving is sacrificing the present for the betterment of the next generation. It is giving service to the future rather than be serve at the present.

When we save or invest, in fact saving is equal to investment - investment is just another form of saving (this is another concept we can talk about later), we are building the defensive walls for insecurity. Savings will give us security and at the same time, a confidence to create new things. This could serve a stepping stone for creating a new dimension of our life. Savings could give us freedom to do things we want – to move from one place to another without time constraints.

This is the era where most of the young generation will save, because this generation knows the value of saving. In 2014, bank quarterly savings interest in the Philippines averaged from .03% to .04% (which is lower than inflation); an indicator of high bank liquidity or high saving rate.

This is not to say that we should not consume (and I doubt if you can stop yourself from consuming the basic needs) – but we should consume wisely and save for the future.

When we know how to save, it's time we explore another term for saving – it is called investment.


1 comment:

  1. I agree a well, save for the future and be an intelligent consumer.

    ReplyDelete

Subscribe to Philippine Economist via Email