ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving is the portion of income not spent on current expenditures. In other words, it is the money set aside for future use and not spent immediately.

Detailed explanation-2: -Savings refers to the part of the income which is not spent on the consumption of goods and services in the economy.

Detailed explanation-3: -Disposable Income. A Marker of Economy Health.

Detailed explanation-4: -At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

Detailed explanation-5: -Income – Savings = Expense By rearranging, we are essentially prioritizing savings over spending. This literally means, the moment we draw our salary, we first divert the funds towards savings and spend whatever is left after saving.