Pretty much every blog and every newspaper has a section dedicated to finance, and within this section is the constant urge for you to save money. Basically, there is a lot of pressure on the need to save.
But is this pressure warranted? Well, in a word, yes.
In fact, there is a wide range of reason as to why saving some money makes a whole lot of sense. Of course, the very notion of putting some money aside at the end of each money is not the most attractive of propositions, and certainly falls under the category of easier said than done. As such, it could help you to have a clear goal to work toward or a clear understanding of why it is important to save some cash.
Quite simply put, the sooner you start saving for your retirement the better. That is because the earlier you start the less you will have to save later on. Retirement may seem like a totally far off concept to someone in their twenties and thirties, but it is a way of getting your money to work for you. And the more you save, the more it will earn you. The amount of interest you earn is completely dictated by the amount of money saved up, but it will keep on increasing with time and contributions, and allow you to enjoy a much more comfortable retirement period. Bliss.
Life never goes to plan. Not exactly, anyway. There is always some sort of hurdle these crops up and these hurdles almost always cost money. Let’s go to the smaller end of the scale and say your refrigerator packs up. Now you could get yourself some personal loans to cover the cost, and this wouldn’t be a bad option. But it could be that you have a bad credit rating, or it could be you don’t like the idea of interest rates, in which case having the cash to help you out could prove essential. However, it could be that you suddenly lose your job. Sure, you can get straight onto the hunt for something new, but who is to say that won’t last a couple of months. As such, you should aim to have three months worth of rent or mortgage repayments in your bank.
This is one of the most common reasons people save money; they want to own their own home someday. But having a mortgage requires a down-payment. That isn’t all, though, because the more you have saved the more friendly the lending rates offered to you will be, and less you will have to pay back each month. Basically, the more you have saved, the better the interest rates will be and the bigger your home could be. Home buying is easier if you have money saved up.
Not everyone cares about material things that need replacing, or homeownership or retirement planning. But they aren’t the only reasons saving money is great. It could be that you’ve always wanted to interrail around Europe while making your way through a best-selling book or some poetry anthropologies. It could be that you want to go on a Caribbean cruise or skiing in Canada. All of these are made more and more possible by savings. What’s more, saving up for something that is fun is going to be much easier to achieve than saving for something that is totally mundane.
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