Money is such an essential part of everyday living. From the clothes we put on in the morning, to the breakfast we eat were all bought with money. The majority of adults go to work and pursue further education in search of money.
However, in this money-centered age, many people still don’t understand the necessity of savings. To save money is to reserve an amount of money in any suitable location usually a bank for future use.
The idea behind saving is to leave some for the day it may be necessary. When you start earning money, it is usually recommended that you save a certain percentage. Why though? Why should you save money?
Why You Should Save Money
There are many reasons why you should save money. This article is designed to help you understand the need to save money.
Here we are going to discuss just the major reason why saving is very crucial. They include;
Attaining Financial Independence
Financial independence is something that not many people can boast of achieving. Many people live from hand to mouth and rely solely on their salaries for money to survive on. They are financially dependent on that job.
When you save consistently and with discipline, you are able to gather wealth over an extended period of time. This money can then be used to invest in areas such as real estate, business, etc that bring in more money. Hence saving can help you attain financial independence.
Having a Safety Net For Emergencies
Life is unpredictable with many unexpected turns catching up to our dinner or later. Many people have faced situations where they are in need of a huge bulk of money. This can be for hospital bills due to unexpected sickness, payment of an urgent bill, provision for family, etc.
When you save money, you will have a monetary safety net that can be used during emergencies. This allows for peace of mind too as you know that if anything were to happen, you will be able to afford the necessary items.
Fulfilling Life Goals
Many people have a bucket list full of plans and life goals they hope to achieve in the future. However, for many of us, these life goals are costly to attempt and require a degree of financial independence. For example, if your life goal is to travel around Africa, you need money to sponsor the transport, food, shelter, etc needed during the trip.
Saving allows us to achieve personal life goals with few restrictions. If you have saved up enough money you are able to attempt any exercise as you can afford it. Saving money allows these life goals achievable.
When you save money, it allows a level of flexibility with work. This is because you do not live directly off the income from your job.
As stated earlier, saving money gives you financial independence from any job It also allows you to take longer breaks either to do what you love, spend time with your loved ones or have a break.
This work flexibility can be made possible if you have money to live off of. Hence saving money provides work flexibility as they have a nest egg to find their life while taking a break.
More Travel Opportunities
If you’re someone that loves to travel, saving up for these travel vacations allows you to have unique experiences. You can decide to undergo a short-term saving regime to be able to afford the trip.
Saving for travel also allows you to only go where you can afford. This reduces spending and aids in discipline while providing you with life opportunities many people do not have in general.
How to Save Money?
Finding out the best way to save money for you can be a struggle. Different methods focus on different savers’ issues so make sure to research the best way to say money for you.
You can use automated transfers to a high-interest savings account to save money. This is done by requesting an automated transfer monthly, bimonthly, or even years to a designated account.
This is good for salary earners as it allows you to save every month whether you are distracted or do not remember to. It can be stopped at the bank if you decide to.
A Cooperative is a group of people that save together. This money is either redistributed at the end of the saving period or just to purchase items in the best interest of all its members.
Many offices offer their workers cooperatives to join. This can be a good way to save a little for any specific goal of your choice.
Saving Focused Apps
There are many money-saving apps available to assist people with saving. Examples are Piggyvest and Cowrywise etc. These apps are tested and tried and have helped hundreds of thousands of people with improving their spending and saving habits.