The idea of saving money has been a controversial issue for quite some time. A person earning little amount might find saving a parody but it is equally important to save no matter your earning. Financial education insists on saving as the primary way to track your finances. Once you embrace the culture of saving you give yourself a peace of mind and clear thoughts on how you will get more money and utilize it well in the future.
Great economists believe in saving however little you have. Therefore, saving therefore can be generalized as deferred consumption of income. Saving can be done through a deposit account, investment funds, and pension accounts or as cash
Importance of Saving Money
To become financially independent
Being independent financially is basically having a freedom of choice for your financial life without depending on your earnings. This might further imply having savings that you can depend on when need arises. Once you embrace savings you automatically kick out dependency on loans to meet your needs.
What will you if your car breakdowns and you require almost 3000$? When in such a situation you will realize your savings could save you from such scenario.
Emergency can be equated to a midnight thief. It comes unexpectedly when you are broke. To save yourself from this, all you need is to start saving now and you will handle such future challenges appropriately.
You could lose your job
Jobs security is becoming challenging because of favoritism among other factors. Therefore, don’t feel too comfortable with your job because you can lose it when you least expected. This basically implies you need to save to be on the safe side.
Helps you to live a focused life
People who don’t plan for their financial lives are fond of running from crisis to crisis. Therefore, to live a life free from psychological stress on where to get money to settle your bills, start saving as little as you can.
Save for retirement
If you are lucky to have a job it is important to save for your retirement. This is one way of securing your future financially. Don’t wait until you are caught up with time. Start saving now and the end of it all you will have a lumps sum amount of money which you can invest.
If you intend to pursue higher levels of learning it is important to save so that you will eradicate future fee problem. It is common knowledge that education is a progressive learning which you can undertake it till your old age.
Helps you realize big dreams
Everybody has an aspiration to be successful in life. However, the big question is how to make your dream come true. For you to achieve this it is important to save your money which be your capital amount as you work towards achieving your dream
Saving for family responsibility
At one point in life one might choose to have a family. Therefore it is important to note that for a happy family you require money. Start saving to meet your Child’s needs and to buy your lover some jewels for a happy family.
Save for improvements
You may need to make improvements on your assets and other valuable possession. Through saving you will manage to keep them in good condition for a longer duration.
It is a healthy habit
Inculcating yourself in saving is a form of discipline that you need to embrace. If you become extravagant today you are slowly ruining your future. Saving will help you live a clear and purposeful life.
Saving can give you freedom
Financial planning entails saving your money so that you can be free and go for your goals. It is hard to accumulate money for your projects within a short period of time hence it is important to save for your financial freedom.
Saving enables you to take calculated risks
Saving enables you to build cash reserves which gives you an opportunity to take risks without fear. If you haven’t saved it will be harder for you to start any kind of Business.
It helps you shed those extra money
Eating in restaurants and watching movies are some of the habits that drain your wallet. You can start saving instead of spending your money carelessly.
Saving your money should be a culture to embrace. Set targets and try to achieve them. Learn to save that extra coin because saving is one of the hidden secret which the millionaires that you see around actualized. Be a future tycoon by saving today.