What Are The Main Things People Save Money For?
People may save money for a variety of reasons. Still, the main things that people save money for tend to fall into a couple of specific categories. People tend to save money for emergencies, they save money for their children, they save money for retirement and they save money in order to enjoy life to a greater degree.
Of all of these things, emergencies are probably the one main thing that people save money for. It is true that nobody likes to think about losing their job, a disastrous financial crisis, or a debilitating injury. Unfortunately, these sorts of emergencies happen to people all of the time. Even much smaller emergencies, such as needing car repairs, are better handled by having saved money along the way, as opposed to having to scrape money together during a crisis. Saving money for these types of situations is critical. If at all possible, people should have a savings of three months worth of their expenses to help in case of emergencies.
People tend to save money for their children, as well. Parents want to see their children succeed in life, and to be happy. They may save for a child’s college education, for example. They may save to help the child buy their first car. Some people save money for their child’s wedding. Some people even save money to help their child buy a house when they are older.
People also save money to enjoy life. Taking a trip to Disney World is a lot more enjoyable when you know that you have paid for the trip with money from savings, as opposed to using credit cards and having to pay for the trip for years to come. Other people might save money for a hot tub, or for an addition to their house, or to purchase a sports car.
Finally, people tend to save money for retirement. Fortunately, with employer-sponsored 401(k) plans, and any number of types of IRA accounts, people are able more now than ever to provide for their own golden years.