Saving isn’t just a trend; it’s our responsibility to ourselves. It helps us establish future funding, prepare for emergencies, and find new ways to grow our money.
Our parents would often tell us to save money when we were young. But since our resources were limited back then, this advice must have slipped our minds.
This reminder did not make sense until we started earning. This is where the importance of saving money comes in, especially when we set our minds on buying something that we want.
Is there a need for us to save? Absolutely! Not only does it thicken our bank account, but it also serves us more benefits that could lead to financial freedom.
Reasons To Build Savings
Financial Security
It’s not every day that you go to work and come home and spend only on gas and lunch. Something will eventually come up: a quick detour to a fancy restaurant, a night out with friends, or an emergency. Setting up savings will secure you from these unforeseen events. Good if no trouble passes by you, but that doesn’t mean you should spend the money that you have set aside on something else. The best thing to do for these allocated funds is to invest them. This way, you have secured your future and prepared for unanticipated outlays.
Freedom
Save, even if you don’t know what you’re saving for. People often fall into the trap of buying what they want right there and then and not looking forward to future expenses. But when the time comes for them to spend on important things, they regret and realize that they should have prepared earlier.
This situation depicts how savings free us, fully or partially, from laying out significant amounts for hefty purchases. If we adhere to a savings system, we can also avoid living paycheck to paycheck and spend on something without the guilt of not setting aside for the more important things.
Confidence
Saving allows you to take risks, whether it’s doing business, acquiring an investment property, or joining a different venture. Although what you save may not yet be enough to settle these costs in full, at least you can manage your regular earnings in a way you can regularly allocate for these expenses.
Another risk-reduction aspect of saving is that it eases people who plan to leave their jobs, especially those without replacement. Savings buy them ample time to find new opportunities before they run out of funds.
Interest Earnings
Saving also brings monetary benefits outside your regular remittances. The money you drop into your savings accounts earns interest – what’s good is that you don’t need to do anything since the bank does it for you. If this has got you curious, banks often borrow these deposits to lend to other customers who need loans or financing and charge interest rates that are higher than your saving’s growth rate. That’s how banks earn your deposit’s interest. Can you withdraw your saved money? Absolutely.
Saving isn’t just a trend; it’s our responsibility to ourselves. It helps us establish future funding, prepare for emergencies, and find new ways to grow our money. Although starting and sustaining a savings system can be challenging, let the reasons we’ve shared motivate and guide you in this life-long aspect. By then, you’ll thank yourself for enriching your financial health and securing your future.
