The savings — Story form
It was 2008. The Pulsar bike’s advertisements were catching every middle-class boy’s attention. It is first in its segment with a powerful look and engine. Surprisingly there were no direct rivalries for it in the initial stages.
I was in (the end of) my 8th grade. Like any other boy, my wish on the commute is Pulsar too. I asked for that bike to my parents. The obvious reasons (of age factor) stopped me from reaching it. But that didn’t stop my desire and I become adamant over time.
At one point (after months into my 9th grade), they agreed to get me one with conditions:
- Should score 450+ in 10th board exam
- Should choose Bio-Maths in 11th (aiming Doctor) and
- Strict disciplinary conditions
Though the waiting period is long, it seemed to be convincing and reasonable from their point. So, I agreed and strived for it.
Looking at me pushing my limits made my grandad to the idea of gifting me the bike for my 14th birthday. But my parents stopped him (rather asked to wait) till I complete the 10th. So, he made an amount of 50K and gave it to my mom.
Even before I enter the 10th, series of events happened: grandad passed away, the amount lent to one of our close relatives, the family business faced a slow growth. And I didn’t make it to the first 2 conditions of my parents while completing 10th, so, no bike as promised. Everything shattered in my mind and the depression continued until I complete high school in the hostel.
Just after 2 months into college, the money we lent was returned. Despite other requirements, dad decided to get me a bike of my choice for that amount. So, in the hype, I went to get the details, where I was shocked to see a rise in price to 75k+.
The hype caught me quick and it put me restless. Seeing the family situation at that time, I couldn’t ask for the extra 25K+. So, I decided to make the amount by myself. Since that day, I thought only about getting the bike while I was in my 10th grade. I firmly believed the rise in price is due to the demand for the bike among people.
Months passed. I was at the end of the first semester. Being grown-ups and introduction to WhatsApp made us (school friends) talk more and end up planning a get-together during Pongal holidays. We talked with school teachers’ and they set it as alumni meet.
It went like an informal meeting in the 10th section. Staff asked us to interact with the students about our experiences. We carried out like a fun chat and in a flow, remembering my fee structure for 10th, I passed a comment ‘you should eat well for such an amount (mentioning my time fee)’
‘Bro, what about the remaining 40%?’, someone passed a comment. Hearing that, I inquired more about the fee structure for them.
That night before sleep, I recalled every moment that has happened that day. I remembered a professor instructing us on the first day of our college about the increase in competition and fees compared to their time. Later I realized a fact that not just the demand but something else is playing a role in the change of value for everything.
I was looking for answers to questions: Why the value of everything keeps changing? How it is being changed?
Analyzing that with references and research, I found about Inflation. To show my intelligence and test my dad’s, I inquired him about the plans he had had to put me in college and how inflation played its role.
His reply made me speechless. He said ‘your capitation thrived on its own. Your grand-dad made an FD while you are a kid (3 years old). It multiplied on its own and saved your a*s now’.
I was shocked is an understatement. All I thought earlier was, how everyone is losing the money they earned? And in what ways they are differing? Now, I have many questions like What are the ways to multiply money? How someone is getting rich? What makes the economy flow? And more.
Going through that, I came across two words: Investments and Savings.
I wanted to know more about it and be a part of it. So, I went through the details of both. While going through investments, one thing chased from the beginning was, the risk factor beholding the amount spent. It also demands greater investments for properties like real estate.
I was always a safe road person. I was never interested in rushing and never would. Even for life, I had planned only to work somewhere and to keep a minimally engaged happy life. The idea of investments and running behind it doesn’t match my philosophy. So, I dropped the idea of investments.
Coming to savings, I understood that, the value in hand should upgrade itself to rise above inflation or to just match with it. The standard change in Inflation is 2–3% every year. In the worst cases, it may go up to 5–6%.
I came to the idea that, If I have to save my money for my future, the value it generates should be calculated for the change in value that will be proportionate in the future. Thinking all this, I dropped the plan on getting a new bike, as I couldn’t afford the expense it gives later. So, planned on saving it for later, I chose to drop it in a safer side like: Bonds, FD’s, Trustable Debentures
While I said my mom about this, she thought that I was interested in but running short of money to cover the price. So, she gave me the Gold she had collected with the interest amount for the capital lent.
This once again surprised me. Not only money generates money and adjusts its value. Some materials (metals) which travel with time. Now I understood why there was plenty of gold acquired during marriage function with a quote “It will help in Future”.
Maybe I didn’t buy the bike I strived for, but I learned some valuable lessons which might save my future from collapsing. Thinking these, I gave back the gold she gave me with a “Thank you”
