Why should you save? This is a frequently asked question, isn’t it? With the prices of goods and commodities always on the rise, saving money became more of a luxury rather than being a necessity. However, one should find a way to be able to save. There are a million reasons why one should save regardless of the amount.
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This is because saving gives you freedom—the freedom to enjoy life more than merely surviving on a day to day basis. Having dependable savings will allow you to venture into the future without financial problems. There are also other answers to the question of why you should save. Here are some of them:
Preparation for Children’s Educational Expenses
Paving for your kids or grandkids college days should be a long-term plan. While there are other ways to send them to college, such as grants, scholarships, and part-time jobs, being assured that you have enough money to send them off without worrying gives peace of mind. Every year, university tuition fees have been getting more expensive. Aside from that, the monthly allowance for food, rent, and other things are more costly than you think.
Setting up an educational plan at the earliest and most convenient time should be a priority. This way, when the time comes for you to send your son or daughter, you need not pawn your jewelry passed down from generation to generation.
Medical Expenses Coverage
Being medically insured can help you pay your medical fees should anything happens, this doesn’t mean that you can now sit back and relax. Many things could go wrong when you’re only relying on your insurance should someone from your family gets sick or gets in an accident.
What happens when, fingers crossed, your insurance claim is denied?
The probability of this happening might be low, the fact that this is a probability should be thought of. Another is the excess medical fees. There are times that even though you’re insured, you still need to pay. So, it’s better to have money set aside just in case this happens.
Emergency Fund
It’s better to have money kept in the bank rather than having to borrow some. Aside from paying for your child’s education and medical emergencies, you might need to spend other things on short notice. If you’re on a tight spot, then unexpected expenses such as significant automobile repairs, gift expenses, or worse ransom money might throw you off in your monthly budget.
If you resort to borrowing from a bank or worse from loan sharks due to the need for producing a large amount of money in a short time, the unanticipated monthly dues and interest will affect your life significantly.
Retirement Plans
This should be the ultimate goal. Growing old is something you can never avoid. No matter what you do. While age is just a number, your body is not. When you grow old, you start to recount and remember the things you did- what you regret and what you’re proud of. Don’t let not saving when you were younger, be a regret.
When you’re financially stable and ready by the time you retire, then you can spend the rest of your days worry-free and possibly debt-free.
Final Thoughts
Nobody can tell how what the future holds. That being said, what you can do is to prepare yourself for the unknown. Make plan A’s and B’s and C’s to prevent financial hardship by consistently saving money. Although saving money is not easy, what little amount you spare will surely go a long way.
