Savings are not really Savings in Raw form

Kishore Vishwa
5 min readFeb 10, 2020

Having ideas about savings for your future? Then give it a try to tackle savings get affected from inflation safely.

Image by Nattanan Kanchanaprat from Pixabay

Regardless of a person and their status (Economical), if someone wants to be successful (or would like to get going without lapse) in their later life, they should have an idea about their financial stability in the future.

Even the greatest, luckiest people like Sportsperson, Lottery winners, and Speculative Business person ever lived (who had not savings) didn’t last a decade post their career.

All had/have one thing in common, No idea about the future, that’s Savings! This situation is not general, but appropriate. The inability to understand the cash-flow will lead someone to be profligate instead of leading forward.

The Attitude of Negligence

To express the state of mind of a broke person (later in his/her), their attitude needs to get compared with a child.

Initially, a child desires to get attention and would do anything to be in the limelight. The same happens with fully-grown kids (adults). To be the center of attraction, they would go for all the fancy stuff which is of high value. Unfortunately, they all have their values diminishing right from the time bought.

None can give a child a Million dollars and expect it to be successful without teaching the value of the money. In that state, anyone alive will take it for granted and use it for their wish.

One good deed by these people -is showing others the path not to follow, though they can’t revive anything they had lost.

There are only 2 methods to not reach this situation.

1. Savings

2. Investments

Investments are no joke. It is like spending all the time you had earned and waiting for it (the time itself) to give more. You may get back, or won’t. That’s not guaranteed. So, let’s focus here only on the other thing which will be there even if it didn’t add like the returnable investments.


A Savings is an emergency fund, which will help one at times of potentially undeniable risks/tasks. This could be immediate or for later. The purpose stands the same. There’s a slight difference between Savings and an Investment.

In Savings- The value of the money stays the same irrespective of the change in trend

In Investments- The value of the money fluctuates throughout the period. It is corresponding to the change in trend.

Savings are not saved if saved as plain cash. Because the value returned by 1$ in 1970 does not return the same in 2020. The value of money deprives over time. Reason- Globalization. Due to this, Inflation is unstoppable in the Global market. Because the market depends on trade, and trade depends on goods.

No goods can get served from the same place for a decade for the same value. The cost gets increased, revenues change, and environmental factors need to get considered. So, the change in value is inevitable. This is the reason why there’s a recession every decade.

If you have a hold on a sum of money over a period (say 1million for a decade), the value someone gets out of it at the start of the decade will not be the same at the end of the decade, as the money stays the same, but the returns it gives increases in value. It is good for a country but not for the individuals.

Instead of learning this, many people think about saving money in its raw form, which is hilarious. To prevail the value over a period, money has to be in other forms. [Unfortunately, the value returned by these shows the difference of the period and that difference is uncontrollable.] like:

  1. Gold
  2. Bonds and Debentures
  3. Fixed Deposits

Gold is the one metal that prevails in its value since humans started eating steamed foods. Its Ornamental and Medicinal value is what keeps it alive throughout time. It still has and always will. This is the reason why many countries have their currencies backed with Gold.

Sad thing is, countries like the USA started dropping Gold-backed policy and routing on Dollars through faith and Economic analysis. But there’s a chance for Dollar to lose its grip in Asia as the Asian Infrastructure Investment Bank is about to launch its very own currency to get away from the weaponization of US Dollars.

Even the Euro’s value could be affected by policies like this. So, a materialistic value like Gold will be reliable than that of the Dollars through Faith.

There are downsides to gold as well. They are:

1. Being a natural resource, sooner or later, we will run out of it.

2. The Value determining the Bullion market is Shallow.

3. Though it can be immediately converted to cash, it cannot recreate its full current value.

Bonds and Debentures

These are modern forms of gold made by the Industrial revolution. In this, the principal amount is guaranteed and it won’t fluctuate like gold. By making a bond, you are generally lending money to a corporation (both Public and Private) and you’ll get interests in that every year or every 6 months. Debentures are the same but the principal is not guaranteed as Bonds.

Advantages are:

  1. The return percentage is higher than anything offered legally by the government on lending money with an average of 9–10%.
  2. As the money helps in a business getting developed, the Tax benefits are high. So, from your high returns, you need not pay a huge Tax for that.
  3. These are not Shares or Stocks but can be changed into one on one’s wish. If the company is extravagant on its course, why not?


  1. The percentage remains constant throughout the period. So, if you calculate the value after the returned period, it just has coped to the initial value (maybe with an amount added)
  2. The portfolio needs to be analyzed properly before opting out, as it may negative outcomes, resulting in deducted return. So, it demands time initially.
  3. These are not easily available due to its security in returns.

Fixed Deposits

FDs are the same as Bonds, except the fact that these are dealt with Banks and Bonds are with Corporations. The amount will be used by the bank for its development through

  • Lending
  • Investing
  • Borrowing and so

The amount obtained through these will be divided with the receiver (mostly at 60–30%). The rest of the advantages and disadvantages are almost equal but with some differences. Those are:

  1. The Percentage of return doesn’t exceed 8% at any cost.
  2. It is Taxable unlike Bonds
  3. No prior research is needed like Bonds.

These are the safest way available for Savings. In these methods, your principal amount is assured and Inflation won’t bring you any harm. Also, you won’t be flooded with profits as well. The value will be maintained, and in cases with a slight bonus.

In the toughest of times, savings will help you to get going in life without a change in the graph in your life.

These are analyzed (with an idea to never lose money in any case, also to be prepared for the change in trend) only in terms of Savings. For investments, there’s already a separate article, and the types of investment (again with secured way of returns) will be up soon, so, stay tuned.



Kishore Vishwa

Focusing on social-issues and the psychology behind.