Why Is Saving Money So Important?
Saving money is so important for many reasons. Some of the reasons that saving money is so important have to do with security and safety, while other important reasons for saving money have more to do just with the practical aspect of trying to plan ahead for major expenses.
In terms of emergencies, it is so important to be saving money. While no one likes to think about the possibility that they will lose their job, become disabled, or have some other sort of disastrous financial crisis, the fact of the matter is that it happens 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 is so important for these types of situations. If at all possible, you should have a savings of three months worth of your expenses to help in case of emergencies.
Saving money is important for planning ahead, too. Almost every parent would like to see their children go to college, for example. However, many children will not be able to go to college on scholarships. Those that do not will either have to find a way to pay for college or to take out student loans. Student loans may not even cover all of their expenses. Saving money is an important part of providing for your child or childrens’ education. Education is not the only area that parents should save for, in regard to their children. For example, in the same way that parents save money as an important part of education, they may also save money for their childrens weddings, or to help their child buy their first car, or even their first home.
Finally, saving money can be an important part of just enjoying 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.