web analytics

Importance of Saving Money

Importance of Saving Money PhotoSaving money is a no brainer. There are a lot of reasons as to why people of any age should save up on money. However, sometimes they have to be explicitly mentioned in order for us to have a clear grasp as to why we have to take a portion of our paychecks and put them in a savings account of some sort. Here are the top reasons as to why we should save up on money.

Emergency funds

You or your family may be healthy now, but no one can really say how long that will last. Illnesses and accidents may occur with no notice at all, and you must have some funds ready in case this happens. Medical costs can be quite high, and money is necessary in order to acquire the necessary medical attention.

Emergencies also include getting laid off. You must have enough savings to tide you over at least until you find another job. This is extremely important especially if you are supporting a family and have many mouths to feed.

The future

Do you have children that are graduating from high school? It is important to save up for quality college education in order for them to have a better future. Savings for this purpose has to start early, as college fees and prices for books can be quite steep.

Future expenses would also include repairs for the house or payment for a car. These are expenses that you should be able to consider along with utility bills and other expenses, and you should have ample savings to cover these expenditures if and when they arrive.

Luxury items

Of course, you would need to save up on things that you will actually enjoy, as well. You can save up to take the family on vacations abroad, or on extended road trips. You can also treat the wife to a concert, or buy yourself a nice gadget or appliance as a reward for your years of hard work.

Retirement

When you retire, all you have going for you are your pension and your savings. In order to be able to live comfortably come retirement age, you must have ample savings as well as a stable financial plan, whether it be in stocks, funds, or a small side business that will generate you a satisfying amount.

Regardless of what your intention is, it is always wise to save up a portion of your income for the above purposes. You’ll never know when you’ll be needing extra money, so it is important to have some tucked away so that you would not have any trouble when the time comes that it is needed.