The Purpose of Making Savings
These days people are being encouraged to save money. However, it feels more nicer to spend cash as opposed to saving it. Even though using your money can be interesting and it is a temptation that we all face, the truth is, it is more enjoyable to save your cash. Witnessing your savings grow every month feels good and more so when you have surety you can use it if a dire need comes your way. Highlighted below are some of the purposes why people should not use all their monies and should be dedicated to set some aside.
Urgent Situations
It is likely that you have the accurate budget for your monthly groceries, bills and rent. generally you have the freedom to spend any money left once you have paid your monthly expenses. But then, it is your responsibility to reconsider of what will befall you if an urgent situation comes your way and you are penniless. For example a major issue that will necessitate you to engage the services of a plumber or an electrician. Or maybe you have a problem with your vehicle that needs to be fixed. There are a times you may get yourself on the wrong side of the law meaning ,you will have to engage an attorney who will also demand to be paid significant amount not unless they provide you with an Arrest Relief. If a situation like these gets your way and you have not saved for crisis, you may be forced to ask your family members or friends to support you or get a loan which will turn out to be very expensive. Remember the situation will even get worse if you are not able to settle the loan.
Giving Up Work
At some point, everyone wishes to leave their work. Depending on your profession, you may have to discontinue your job involvement. Most if the job demands for your physical input. If this time comes you will be at peace knowing that you had saved for your retirement. We have numerous methods that you can use to set money aside awaiting your superannuation time. It always pays to consult a financial adviser in order to be certain that the option you are selecting will finally give you the return you need in future.
Save For Non-Essentials
It is through saving that you can managed to buy a more costly item such as a vehicle or managed to go for a noble vacation. You will not only save yourself from the huge interest paid on loans or costly charges for credit cards that you may need during your vacation but also have peace knowing that you are capable of saving the finances you need. Even if constant gratification has filled the minds of people these days, we all have to appreciate the beauty of saving and procuring when we have sufficient money. It also provides you with more time to contemplate about your purchase. Eventually you may decide to go on with your procurement plans, keep the money in the account, or purchase a different thing.
Reference: http://thedailyjournalist.com/