Save before you spend, automate the process

October 30 is celebrated as World Savings Day.

- SANJAY KUMAR SINGH

It offers a timely opportunity to pause and assess whether you are saving adequately for future goals.

Why has saving become difficult?

Social media fuels lifestyle pressure by showcasing others’ lavish travels, homes and cars. It prompts people to spend to avoid FOMO (fear of missing out). Social norms have altered as well. “Earlier, saving was a virtue. Now, spending, and not saving, has become the new normal,” says Arnav Pandya, founder, Moneyeduschool.

E-commerce and quick-commerce platforms encourage impulsive spending, while easy digital credit and EMI options lower the barriers to borrowing. Some struggle to save due to income constraints. “Income levels for many young earners have not risen significantly. On the other hand, the cost of living, especially rent, has risen sharply in major cities,” says Deepesh Raghaw, a Sebi-registered investment adviser.

Why start early?

Starting early helps form the saving habit and makes it easier to save more as income rises. Early savers also benefit from compounding.