10 Dec Why do you have to save money
Saving money is an integral part of every person’s life. It is a moral responsibility of every adult to save money regardless of their reasons. Saving money is a way to prepare oneself for the upcoming future.
Saving money helps a person to manage their future in a better manner. It helps to make wise and better decisions that directly affect their lives. Different people save money for different reasons, some save for their future, some for their dreams and various other things. Here are a few reasons why every person must save money,
1) Backup during emergencies-
Emergencies could arise at any time hence it is essential to save money just to be prepared for unexpected emergencies. Keeping money in the bank is a good option, but including banks, a certain amount of money should be held where it is easily accessible by a person at any given time.
2) Financial independence-
Being financially independent is a desire for most of the people around the world, but not all can achieve it. This can be accomplished if the income of the person is more than their expenditure. Saving money allows a person to be entirely self reliant and not depend on other people.
3) Clearing debts-
Being debt free in today’s generation is always tough. Due to the increasing rate of interests and desires, people usually end up buying commodities that are out of their price range and thus become victims of EMI. Debt can be in any form such as housing, automobile or even education. Saving money is one of the great ways by which a person can become debt free without fearing additional loss of funds.
It is always good to feel secure during harsh times. Saving money, even a small amount every year allows a person to be financially stable during times of crises. Being secure in life does not happen quickly as a person must work hard every day to reach the status where they can live without the fear of losing out much of their life.
5) To lead a good life-
Every person wishes to lead a good and happy life. Without working hard and saving this usually ends up being a dream for most of the people. Saving money allows one to fulfill their needs and desires without worrying much about anything.
Saving money should be more of a habit than a forced responsibility. One must inculcate the habit of saving money from a very young age as it always helps in future endeavors. Saving money allows a person to fulfill their dreams and desires without any form of hindrances. Keeping a fixed FD and investing money in stocks and shares are great ways of maximizing one’s finance. Another way of saving money if by taking complete advantage of retirement plans and PF funds.