Everybody talks about the importance of saving money and how you should start saving early on. From parents and neighbors to friends and financial experts, the money-saving tips never ends. But, why? Why is it so important to save money?…
Many of us may look at our current situation and think why should I care about saving money when I have enough today. But saving money is not about today, it’s about the future and the uncertainties it brings with it.
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If you ever wanted to know the reason behind the importance of saving your hard-earned money, here are 6 solid reasons that will definitely help you consider saving your money.
Saving For Vacation
Vacation is a part of a working man’s life. You need that few days or weeks of vacation every year to relax and getaway from all of that stress. But, vacations are expensive and can put a serious dent in your budget. So, take saving money for vacation is your fourth reason for why saving money is important.
Saving For Emergency Funds
It really is imperative that you always have a bit money saved up for an unexpected situation. You may not always have a job where you are making money. An emergency fund is the only thing that can help you survive unexpected expenses like car repair or perhaps even an unexpected job loss.
If at all possible it is advisable that ones emergency budget ought to be at least a minimum of about 3 to 6 months of your expenditures. If you find yourself in the beginning stages it is advisable to set aside no less than $1000.00. Of course, as you go along, make sure you add to your emergency fund each and every month.
In combination with your unexpected emergency budget it is advisable to ensure you have a strategy as well as decent insurance coverage set up to make it easier for you to make it through the unanticipated financial happenings.
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Saving For Retirement Living
One other serious purpose for saving money is without question your retirement. The earlier you get started with saving cash for your retirement, the easier it will be for you down the road as you will not have to save as much.
It is also a good idea to grow your money as well. While you continuously chip in cash into your retirement saving account, you can earn a lot of interest on it. Depending on how much money you have in your account, you could even be earning as much interest on your savings as you save each and every month.
In all honesty, you have to at least match what your employer’s contributions. Ideally though, at some point, you would want to be able to contribute about 10% or 15% of your total salary.
Saving For The Down Payment On That Dream House
We all want to buy house one day and to buy a house and get a good deal when you are buying a house, it is always a great idea to put at least 10% of the actual value of the house as down payment. It is no secret that buyers with down payment will get much better deals all around. So, save as much as you can, as in the long run the amount of down payment you put in can save you thousands of dollars in interests easily.
Saving To Buy a Car
I am always amazed at how so many people don’t seem to realize how much money they can save if they would save up the money they need to buy a car instead of putting it on credit. Buy a car with cash and you will kick yourself for every car you bought with credit.
Not only you can buy the car for much lower price, but you also get to be car payment free and that in itself can free up your cash and give you more room to save for other important stuff.
Saving For Your Education
This perhaps is one of the most important reasons for anyone to begin saving money, education. These days, with the way our economy and job market is going, more and more people are going back to school to get that degree that will help them get that dream job of theirs.
Besides, even if you are not planning to go to school yourself, you should have savings in place for the future on of your children.
We all like saving on different things like saving money on utilities, gas, food and other items we use in or daily lives. You can even use the money you save on such items to put towards any of the above saving ideas.
I hope the 6 given reasons for saving money were enough to convince you to save your money. I personally think this last reason alone is enough for all of us to get on the path of saving money.