Keynes on the Rational Savers

Read? The Psychology of Money

After knowing the psychology of money, it might be interesting to know the next topic - the psychology of rational savers by Keynes. (John Maynard Keynes, 1st Baron Keynes, CB was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics)

Precaution

To build up a reserve against unforeseen contingencies.


Foresight

To provide for an anticipated future relation between the income and needs of the individual or his family different from that which exists in the present (old age, education).

Calculation

To enjoy interest and appreciation – because larger real consumption in the future is preferable to a present smaller consumption.

Improvement

To enjoy a gradually increasing expenditure, since most people look forward to a gradually improving standard of living.

Independence

To enjoy a sense of independence and power to do things, though without a clear idea of definite intention of specific action.

Enterprise

To secure a capital mass to carry out speculative or business enterprise.

Pride

To bequeath a fortune to others.

Avarice

To satisfy pure miserliness. (Createwealth8888: This one is really bad and such person does exist in real world)