Savings

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DEFINITION

According to Keynesian economics, the amount left over when the cost of a person's consumer expenditure is subtracted from the amount of disposable income that he or she earns in a given period of time.

INVESTOPEDIA EXPLAINS

For those who are financially prudent, the amount of money that is left over after personal expenses have been met can be positive. For those who tend to rely on credit and loans to make ends meet, they will have negative savings. Savings can be turned into further increased income through investing.


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