For most of us money means everything, yet some of us fail to understand the importance of saving money. Whenever someone tells us to put aside some cash, we neglect their advise and continue on our merry way to spend money and enjoy life. However with one global recession having recently gone by, and another one looming large, it is a good time to build up your cash reserve.
Why Should You Save Money:
1. Global Scenario
As far as the global economy is concerned, things are looking quite bad. With Europe almost on the brink of collapse, and many countries struggling to cope up with their debts, multinational companies too are suffering a loss in their profits. If things get any worse, they will have to lay off people just like most companies did in the global meltdown in 2008. Do you have a backup plan in case you lose our job? If you do, then fine, don’t worry about savings and close this page. However if you don’t have a plan B in case you get fired, then you need to absolutely start saving as much money as you can, and try to rack up savings worth at east 6 months of your expenses.
Once you have a good amount of money saved up in your bank account, you will no longer have to worry about living paycheck to paycheck and not being able to pay off your bills, as you would be aware at the back of your minds that you have a cash reserve to fall back on in case of any emergency.
3. Peace of Mind
Someone rightly said that peace of mind is the greatest satisfaction, as it can guarantee you a good night’s sleep and reduce stress in your life. Imagine if something unfortunate happens someday, and you don’t have the money to fix it, how awful would it feel. So instead of waiting for such a day and then repenting later on, it’s better to start saving money now.
4. Dream House
I’m sure your eyes would have lit up when you saw these words. In fact this one is the greatest motivation for me to regularly save and invest my money every month, as I absolutely want to own that dream bungalow one day. If not for anything else, you must save money so that you can build that dream house someday. Even if you save small amounts every month, with time your savings will grow and one day you would have enough money to own your dream house.
Life is not only about working, it has a lot of other wonderful experiences to offer. If you keep your habit of living from paycheck to paycheck, then you would never be able to see the good things in this world. On the other hand, if you start saving a percentage of your income every month, you would be able to take some money out of it whenever you want to unwind and head for a vacation.
6. Children’s Education
All of us have some responsibilities in life. One of the main responsibilities that each one of us has is to provide quality education to our children so that they can stand on their own feet tomorrow. And with the exorbitant and ever rising school, tuition and college fees, you should start saving money now, instead of waiting for your income to increase and then failing to even bear your child’s education expenses when the time comes.
Last but not the least, each one of us wants to retire comfortably, with a decent sum in our bank accounts that can guarantee that we won’t have to work again. This is only possible if you plan out your finances and start saving money every month. The sooner you start, the better it will be, thanks to the incredible power of compound interest that can grow your money to huge amounts in the long-term.