Why Savings is important

 


If you don’t earn much and you can barely pay your bills, the idea of saving money might seem laughable. When you only have RS 1000/- left at the end of the month, why even bother to try saving? Because everyone has to start somewhere, and if you work at it, your financial situation is likely to improve over time. Saving money is worth the effort. It gives you peace of mind, it gives you options, and the more you save, the easier it becomes to accumulate additional savings.

Savings: The process of setting aside a portion of current income for future use, or the flow of resources accumulated in this way over a given period of time. Savings may take the form of increases in bank deposits, the purchase of securities, or increased cash holdings. The extent to which individuals save is affected by their preferences for future over-present consumption, their expectations of future income, and to some extent by the rate of interest.

Reasons why saving money is important

Saving is crucial for everyone, regardless of their earnings, spending, and life stage. Here are some reasons why you need to start saving.

  • It offers peace of mind: Knowing that you have a certain amount accumulated for times of your need, gives you peace of mind. You can lead a stress-free life with the knowledge that you will not have to struggle if things take an unexpected route.
  • It gives you a better future: Your savings can be the answer to a number of your goals. You can buy a house, accumulate funds for your retirement, or purchase a vehicle. You can secure your future, indulge in the best of things that life has to offer, and live a very fulfilling life.
  • It provides for your children’s education: With a considerable amount of savings, you can fuel your children’s dreams and pay for the best schools and colleges across the world.
  • You can plan your short-term goals: Savings are not just aimed at the long term. You can also benefit from savings for short term. For example, a lot of people save for a few months and then use the saved amount for travel.
  • It gives your family security in case of an unfortunate event: By saving in a disciplined manner, you can make sure that your family is well-provided for. In unfortunate times, your savings can act as a cushion for your loved ones and help them overcome financial difficulties.

 

 



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