Basically, there are 3 motives for holding money. The transactive motive. This is one that everybody mainly has. We hold money to ensure that we are able to run the day to day activities of buying and selling. We then have speculative and precautionary motives. Saving depends mainly on these two motives. One may save so as to cater for unseen contingencies or they may save to exploit future expected opportunities especially in the securities market. Should a person have both motives or they should just stick to one? What prompts you to save?
I agree with you but most of us do not think for rainy days while in job. People in government jobs in my country have enough security but people in private sector have to be very careful. It's more so because we do not have any social security for old age or pension facility unless one has good source in government departments. So the best way to secure future is to save enough for future or when you really need it. I think a saving of 30% from your earning is ideal which should see you living happily in older age.
Saving is essential for everyone as life is full of upheavals. However, like @Log In has mentioned, if someone has the social security of receiving a constant flow of cash throughout, he/she don't need to think much. Nevertheless, if someone doesn't have that facility then he has to be wise in saving. The amount one needs to save depends on many factors. The standard of living you maintain, and the economic and social structure of your country are the prime determining factors.
