Factors Influencing Saving Habits among Individuals: A Study of Northern India

Saving and investment of funds are essential in order to overcome unforeseen events and hard economic environment, keeping into consideration the needs and requirements of individuals as well as their risk taking capability. This study has been done with an objective to reveal the factors influencing saving habits of investors. Questionnaire has been drafted with an aid of Google Forms to collect data and the same has been forwarded with the help of Google Link in various WhatsApp groups and through e-mail. The data have been collected from nine hundred and sixty nine respondents and analyzed using descriptive statistics and factor analysis technique. The study divulged five factors i.e. risk averse behaviour, spending habits, financial decision making support, live for today and risk tolerant behaviour which influence the saving behaviour of an individual. There is a dire need to make the investors financially literate so that they should have adequate knowledge and understanding to make their financial plans.