Savings: Why is it important???
It’s payday and you are starting to feel that I-want-to-buy-this-and-that tingling sensation. You get torpedoed with thoughts about: that trending movie flick, bag you just have to own because you’ve been salivating over it for weeks now (I actually plead guilty to this), grocery list that seems to get longer and longer by the minute, and the bills you need to settle. Yikes, something is missing in your budget and that is Savings, let me spell that again, S-A-V-I-N-G-S.
Lets face it, the temptation to spend outweighs the urge to save every time; it is of no surprise when we find “savings” on the bottom-most part of our priorities. Yet, one cannot overrate the need to save and here are some of the logical explanations why:
Abrupt and Gradual Lifestyle Changes.
Losing a job, deciding to get married, or starting a family of your own. These are just some of the realities which may happen abruptly or gradually, but definitely things which you need to set aside money for, and let me just emphasize that this events need a sizable amount of money.
Life is short, don’t waste it. Avoid stress by refusing to be caught off-guard and avoid putting your plans on hold for the shallow reason of having insufficient funds.
Save every time the opportunity to save arises, which if translated means every payday or every time money comes into your hand. This will ultimately save you a lot of time and from a lot of headaches.
Freedom from Debts.
It is common knowledge that sharks do not prey on fishes alone, they occasionally prey on humans as well. Figuratively speaking, this is in reference to loan-sharks, or people/institutions that charge outrageous rates on money loaned from them. Think about the interest you could avoid if you do not resort to borrowing money every time the need for it arises. Savings is your one-way ticket to a loan-shark free world.
It is also note-worthy to mention that financial discipline prompts us to use interest-bearing money for and only for income-generating activities.
Emergencies and Unplanned Expenses.
Remember that adage which goes, save for the rainy days? This usually comes to mind in situations where: family member gets sick and needs to be taken to the hospital, house roof caves in, or you crash your car and your insurance do not include major overhaul.
Savings is the safety cushion you can fall back on in times like these. Do not only save for the rainy days, fortuitous events happen at any given day. Save for all types of day.
Retirement.
Yep, you heard that right. It is never too early to save for retirement. Choose to live the sweet and “suite” life when you retire, you certainly deserve it, after all, you do only get to live once. You also need to consider the things that come with retirement such as: medication, hospitalization, and inheritances for loved ones.
The bottom-line is: savings is not an option, it is a necessity and there is no room, no room at all, for procrastination when it comes to savings. Start investing for and on yourself by taking a big chunk off your pay every payday and putting it on a savings fund. Live out the new equation: Salary – Savings = Expenses. Start early, start now.
