The Necessity of Saving Money

Saving money gives you peace of mind, options, and makes it easier to accumulate additional savings

The Necessity of Saving Money
The Necessity of Saving Money
Harsh Kumar - 23 August 2021

Saving money will give you security and freedom, particularly in the present time when life appears to be uncertain. In the contemporary world, money opens doors to many beautiful pathways. But at the same time, saving money is one of the essential aspects of building wealth and having a secure financial future. Money provides you with an opportunity to enjoy a quality life and motivates you to face its challenges.

Gateway Towards Peace and Happiness

In this money-centric world, the peace of your life is directly proportional to your bank account. Recently this world witnessed a huge health crisis and meantime millions of people lost their jobs.

When you are financially secure, you can rest easy knowing that you can afford further education, a new home/car, and medical bills and that you are prepared to meet any challenges. Moreover, finding the best savings account is key to making sure that the money that you do put away earns you the highest interest.

Emergency Appears as An Uninvited Guest

Emergencies are an inevitable reality of life; the best example you can get is from a coronavirus pandemic. In all hardship situations, you need an amount of money then; a decent amount of money saved up prevents you from adding financial stress to the pile.

These costs can arise from a variety of sources, including unexpected illness, job loss, accidents, and repairs, among others. This sort of emergency necessitates a large sum of money. As a result, you can pay for these things without falling into enormous debt, such as personal loans or credit card debt. Saved money is the last thing you need to be worrying about in an emergency. So do your future self a favour and save up an emergency fund.

Financial Independence

Financial independence doesn’t mean being rich; it simply means that you must have that much money with which you can fulfil your needs. If you do not have to lend the amount of money in unfavourable times, then you are financially independent. To attain this position, you must save a portion in your bank account.

Makes you Retirement Ready

People who begin saving for the future at a young age are more likely to retire early. If you're young, it may seem absurd to consider retiring right now. However, everyone wants to retire at some point in their lives. You must begin saving now in order to live blissfully and stress-free at that time. Many retirees who rely on a pension will not be able to meet all of their demands, so creating a habit of saving a portion of your salary over time can build up into a retirement fund, making your retirement more pleasant.

Big purchases

A savings account can be counted as both an asset and a liability. With saving money, you can make big purchases like, for a middle-class family, buying a car is considered a dream, and with savings, you can gain that dream. It will also assist you in taking loans while purchasing, as you will easily perform 5C’s of credit, i.e., capacity, collateral, capital, character, and conditions to the Bank.

A Lending Hand for Future Generation

Your financial legacy is very crucial to the people around you. Whether you’re 20 years old or 90 years old, the way you manage your money will leave lasting effects—positive or negative—on your loved ones.

Your savings will help your upcoming generations to pursue their dream career as well, and in a harsh situation, they can use your money. So, with some trim in your expenses, and place a priority on saving and investing your money. It’s one of the best methods to honour your family and friends.

Saving money is essential because it affords security, stress relief, and freedom. And while there are innumerable reasons to save, you just need to find a reason that resonates with you. Whether it’s helping others, improving your marital finances, giving a positive financial legacy, or just having slightly more fun, you owe it to yourself to prioritise saving.

Latest Issue

Outlook Money
October 2021

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