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?