Why You Should Save Money
Many people, especially young people, do not realize the importance of saving money. These people are of the opinion that they should spend whatever they earn and enjoy life. But, at a later date, when they need money, they may not have it and so, they may lament that they have committed a mistake by not bestowing enough attention on this aspect. If you also have such an attitude towards saving money, the following few points and reasons will show you why you should save money.
- You should save money mainly for meeting unexpected expenses. Life may suddenly throw surprises and shocks. So, you can not assume that your life will always be smooth. You may suddenly need money and if you do not have it, you may have to borrow from others or look for some other source. It may be embarrassing for you to request some one to help you with funds. Instead of facing such a situation, it is better to make regular savings so that the money will be useful for such situations.
- Another reason for making regular savings is that you may have to retire at some point of time. Once you retire, you may not have any source of income. You should not be dependent on others for your living. You may be old and may not be able to work also. In such situations, the amount you have been saving will be of great use to you. So, you should plan for your retirement by saving enough money.
- You may decide to buy a residential property but, for doing so, you may require a sizable down-payment. Though you can avail a loan, you should have some sizable amount with you. If you have such an amount, you can negotiate for a good deal with the lending bank or the financial institution. The bank or the financial institution may lower the interest rates also.
- It is necessary that you should go for vacations because such holidays will make you more enthusiastic in your life. You can come back rejuvenated after such pleasurable holidays. But, for having such holidays, you need to have sufficient funds. You should therefore save money for enjoying such holidays.
- You can buy your favorite car if you make regular savings. Though car loans are available, the amount may not suffice if you go in for a luxurious car. The lending institution may not sanction the entire loan if your income is less. So, for supplementing such car loans, you must make regular savings. Likewise, you can buy the luxury items you have been dreaming to have if you save regularly.
- Savings will help you to pursue your own education or for educating your kids at a later date. You need not borrow money if you have sufficient funds with you.
You should consider these reasons and cultivate the savings habit. Experts advise that you should save at least 10 to 15% of your income regularly so that you will not face financial hardships in your life.