What is money for you? Is it really important for you to save money? Money is a very important reality. It is likened to blood that makes the economic life of society get going. Without money life will be paralyzed because it seems to be the be all and end all of economic life in general and in particular. I also want to share nice word of Catherine Pulsifer, “Can implementing the three Rs- reduce, recycle, reuse, save you money? If you only implemented the three Rs in your kitchen, you would save money.”
Let’s now talk about the importance of saving money?
Basically, before marriage 80% of people spend so much money in clothes, fashion, DVD, movie, parties, mobile and on their girlfriend or boyfriend. After marriage we start thinking about saving money because as it has been said humans as we are, we learn about the essence of responsibility after marriage.
We must by all means, be responsible in saving money because we can’t say when emergency occurs and we need money. There are varieties of reasons to begin saving money. Different people save for different needs. We need money from time to time, in our life, so money saving is necessary.
These are the essential reasons why we need to save money.
1. Emergency Funds: This is something very urgent and necessary. It is important to have an emergency fund set aside to cover unexpected expenses. This could cover an unexpected car repair, your emergency appendectomy or a sudden job loss. Ideally your emergency fund should be about three to six months of your expenses. If you are just starting out you should put aside at least 20k for this.
2. Retirement: This is a factor that you should take a close look and a serious consideration. Another important reason to save money is your retirement. The sooner you start saving for retirement, the less you will have to save in the future. You can put your money to work for you. As you continue to contribute overtime you will be earning more interest on the money you have, then you put in each month. You should at least be contributing up to your employer’s match and eventually you will want to contribute ten to fifteen percent of your gross income.
3. Dream House: It is not possible that everyone has their own house, and everyone wants to have a dream house in a good location. We can also say same thing for flat because not everyone can buy land. This is one of the big reasons for saving money.
4. Vacations: The fourth reason to save money is to have fun. You can save up for your world tour. World tour obviously include so much money in order to fulfill this dream you need a lot of money so what you need to do is to save again and again.
5. Dream Car: The fifth and exciting reason is to purchase a car with cash. You will be amazed at how much money you can free up in your budget if you do not always have a car payment. You can also negotiate the price of the car much lower if you are willing to pay cash at the dealership.
6. Marriage: Now, the biggest thing in life is when you have already children after marriage. These fund help you in your time after time family and other cultural events. This is also a good reason for saving money. In fact it is one of the milestones of your life.
7. Wife’s Jewelry: With marriage, wife’s jewelry and gifts that include anniversary, birthday,and parties could be among the most needed by couples. These are some of the many reasons why we need to really work hard and save a lot. Hence, for this we need savings funds.
8. Children Education: A seventh reason to begin saving money is for your child’s education. You may also consider saving for your child’s education when the time comes that they will enter schooling. Their various school expenses such as tuition fee and other expenses included in it.
9. For gadgets and other appliances: You need enough budget most especially when you need to upgrade your gadgets such as your computer and other needed appliances. As a man of business and needs you must always be updated with the needs and call of time in order for you to do business more effectively.
10. Security and safety: Money will always be a means for security and safety. No matter how we may deny it, money will always be considered one of the most essential needs of man for all his important transactions. If you will not have enough money, chances are you will not feel safe and secure.
Best Reading:
- Importance Of Maintaining Balance
- How You can create your future
- Why you should invest early, Benefits
As a conclusion, saving money will really make your life easier and more comfortable. You can become the ruler and the person who is in control of all your wants and needs once you learn and master this difficult and not so easy practice of saving most especially for important moments in your life such as emergencies or rainy days. Be mindful and practical in whatever decision you make with your hard earned money, after all earning is not a bed of roses nor as easy as ABC. Be smart and intelligent. Save while the iron is hot and the drive is still there while you’re still young.
