There are several savings plans where an individual can keep a part of his or her money and the money is expected to grow at a good rate. Now, these activities can be termed as investment and these are different from savings. There is an element of risk that is always involved with these investment activities and this risk factor differentiates saving from investment. It is also a saving motive to keep the money safe and that it can be availed whenever the situation demands so.
In today's global job market, the factor of job security is becoming vulnerable with the passage of time and because of this, maintaining financial security in the future is becoming a matter of deep concern for the individuals. The habit of savings is a primitive habit but nowadays it is becoming very necessary. For the purpose of securing future, many people prefer the options of investment. It is also meant to provide growth to the money. It is also a kind of savings but then it is contradictory with the traditional notion of saving and saving motive.
According to the traditional saving motive, the saved money would provide assistance in the old age when one looses the capacity to work. At the same time, the preserved amount can also be availed for many more purposes. In the post-retirement period, an individual can use his or her savings for education of the children, availing medical facilities and many other purposes.
On the other hand, there are the modern concepts of preserving money. According to these concepts, the money that is kept in the savings accounts is wasted. Instead of this, the money should be put in those mediums where it can grow. Because of these differences in the thinking process, the saving motive is also different. According to the modern concepts, along with all other saving motives, the growth of the money is also essential because at times of inflation, the traditional concepts of saving and saving motive may become inefficient in serving the cause of the individual.
