“A penny saved is a penny earned”, goes the famous quote by Benjamin Franklin. What you save today is what you will have in your hands tomorrow. The key to having more money is simply saving money. Ever since we were kids our parents would teach us how to save money. They would get us piggy banks to save our coins. Remember the feeling when you lifted your piggy bank and found it heavy and probably full. The wave of exuberance it sent through you and the instant desire to buy that toy you saw in store the other day.
But those were of course the good old days when you didn’t have to work to make money. But now, that we know money doesn’t grow on trees, all we can do is manage our finances and SAVE. Yes! Save because you never know what awaits you in future and keeping a little money as safety net doesn’t hurt. Keep in mind that the art is not making money, but in keeping it.
Here are the top ten reasons why you must save money:
10. House loans and EMI
Doesn’t matter whether you wish to buy a two bedroom apartment or pent house; affordability depends on two things: the amount you pay as down payment and the size of the loan you can service. While banks consider other loan repayments, they also look at the income from other sources to assess how much money would be available to repay the loan. Hence enters money in the scenario. You must have money to buy a house and then keep it. If you do not have enough money and savings, forget about keeping that house you bought. Beside banks always keep on increasing their rate of interest, its better you start saving from this moment.
One or the other day you have to retire and retiring with financial security is an advantage. People have desires that they keep procrastinating for their retirement. Thus arises the need of financial security. It takes planning, commitment and money to achieve financial security during that time. It is better that you start saving for your retirement so that even when you don’t have a job, you have money.
8. Uncertain Future
The future is inscrutable; you cannot predict and foretell what is going to happen. All you can do is hope for things to go the planned way. But unfortunately, that decision isn’t ours to make. So, the only precaution you can take is to be prepared for it. And to face unexpected events such as accidents, damage to property etc. you need money. Henceforth, the need to save. So that if in future events take an unfavorable course you have the means and strength to face them and that will happen only when you save today.
7. Indulging in luxury
By saying indulging in luxury, I do not mean that you overspend in things you do not even require. What I mean is that you deserve the good things in life but not at the cost of indebting yourself. The way out is saving. Save for things you want to buy such as a car, gadgets, phones and vacations. Reward yourself with such luxuries once you have saved enough for them. This way you’ll not burden your finances and at the same time enjoy your life without being called a miser. Also control your impulsive spending to save and spend upon things you really need.
6. Grab Opportunities
We have grown up hearing that opportunity only knocks once. So when it does, you must be ready to grab it. It can appear in any form such a chance to start your own restaurant, admission to your dream university or a business or any other form. To grab such a chance you must have money with yourself. Hence the need to save. Some opportunities happen only once in a life time so make sure you don’t let them pass by. Utilize them by being a little cautious in your financial management and saving anywhere you can.
5. Realize your dreams
Doesn’t matter which age group, sex or country you belong to. We all have our dreams and aspirations. Some are very big and some too small but they all are a part of us and our personality. We work and make money to fulfill our wishes and dreams. Some undersized wishes we fulfill within a matter of weeks or days but the larger dreams take time to be realized. Dreams are of all sorts, learning new things, visiting places, indulging in certain things. There are no limits to define them and so you must save money so that you can achieve your dreams. Proper monetary planning and conscious efforts will definitely make you accomplish your dreams.
4. Emergency Call
You never know when the unexpected happens. Emergencies happen to all of us and at totally wrong time- from accidents, diseases to being fired from the job. They have no specific category or time, they just happen. And if you don’t have enough cash in hand, you will find yourself looking for help and end up in debt. So keep aside a stash of money as ‘emergency money’ which is to be used in case of emergencies only not for any other purpose like buying a car or play station. So after setting aside money for basic needs and saving some for any other purpose keep some aside for emergency purposes.
3. Long Term Goal
Long term goals can be anything ranging from buying a house, establishing a business or anything you wish to do once you have enough money. A long term goal is like a big dream you always wanted to pursue but couldn’t due to lack of funds. And you’ll never achieve it unless you manage your money and start saving and stop waiting for that bonus that hasn’t come your way till now. Do not depend on anyone or anything, it’s your goal and you have to fulfill it so its batter you start saving as soon as possible.
To make money, you need money. And how will you make money when you don’t have a job or a business? Education is the ladder that takes you to the zenith of success and facilitates the inflow of money. But education doesn’t come free. You must have enough money to get into good schools and colleges. To attain quality education, you need to have access to good universities. So saving for education is must for everyone. Good education not only lends you a good job but also a high social status.
1. Self Satisfaction
We must save because it leads to a richer, fulfilling and more satisfying life. Undoubtedly, Money affects our relationships and in turn our happiness, freedom, security and peace of mind. To live a stress free life we must save. Save for a sense of security and for positive and uplifting feelings we get knowing that we have money.