June 6, 2015

The Positive Impact of Saving to Nature

Tricycle along Tagaytay road



Savings is one of the well known safety net next to investment. It easy to save than to invest, just set aside a portion of your income to the bank, and there you have a savings. Safety net, for everyone’s information, is something you can hold onto when things are not going right on your finances. This being said, the first step to building a safety net is by saving.

On one hand, it also true that when a part of the population is saving, consumption is lessen. Saving does not mean that you don’t have to consume, saving is sacrificing your wants and buying only the needs. Once you have identified the wants and needs, you can start saving.

The other benefit of saving is that, it helps conserve the natural resources. All the goods that we are consuming are coming from natural resources. When we consume, we create a demand for the good – and thus we extract the resources to produce the good.

Saving could lower the short term economic growth, but this might translate to a more stable long term growth. The practical question would be; would you be better off consuming everything now without considering what will you consume tomorrow?

We can build a safety net by saving while conserving the natural resources of the world.


No comments:

Post a Comment

Subscribe to Philippine Economist via Email