Safety Net. You can also benefit from compound interest as a perk of saving over a longer period of time. Top 7 Reasons to Save Your Money. It will award you choices that others do not have. Here are a few reasons why we save: Emergency cushion - This could be any number of things: a new roof for your house, out-of-pocket medical expenses, or sudden loss of income. In this post, I’m going to take a deeper dive into the importance of saving money, and cover the top 15 reasons to start saving today. The ideal emergency fund should contain enough money to cover 3 to 6 months worth of your living expenses (including rent, utilities, car payments, etc.). Saving money is one of the most important aspects of building wealth and having a secure financial foundation.. If you have the insight for why saving plays a crucial role in our life, you will start saving willingly. You will not stress out if there is an emergency because you have money to spend of. Let’s put it like this…you’ll be ahead of the game if you start early. Best Real Estate Niches – Lucrative & Profitable Investing Opportunities for 2021. We’re not saying credit cards can’t be used as a great tool but it’s different when you have to depend on them to survive. The future is full of uncertainties. Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience. Save for a Down Payment for a House. Save Money . We all wish we were better at it, but most of us simply are not. Jamie Grill / Getty Images. You should have an emergency fund of about four to six months of your expense. Savings gives you a way out from the uncertainties of life and provides you an opportunity to enjoy a quality life. Saving money. Now, I help ambitious women do the same. Even if you are working a minimum wage job while in graduate school, you can still put away savings in a Roth IRA. Emergencies are always unexpected. You should enjoy the journey of saving and investing. Make up your mind on saving some amount from your income as soon as you get it in your savings account. To live happily and stress-free at that time, you need to start saving today. Never hesitate to negotiate a car purchase to save money. According to a study, 62% of Americans do not have funds for unexpected conditions. You should start looking for methods of savings from now itself. Start Your Emergency Savings Fund Right Away Start today by setting aside a little money each pay cheque until you have an emergency savings fund of $500 to $1,000. When you don’t have a lot of money, making big expenditures can seem foolish, but can it be possible to spend foolishly even on wise things? The Life Insurance Corporation of India, which is the biggest Insurance Corporation of India, encourages people to save for the future. When you have health insurance, the cost (minus your deductible) will be covered for you. You never know which unexpected and emergency expenditure will come next knocking at your door. To have a debt free life; Living below your means can give you plenty of room to save. Saving money for future is of prime importance as virtually there is nothing tangible that you can have without the exchange of currency. Read also: 4 Ways for a Family to Save Money. When you factor in insurance for a new vehicle and the interest rate of your auto loan, a new car with a $25,000.00 price can cost you upwards of $36,000.00 or more. Some expenses in life are such which you just can’t avoid! Even if you plan to take the student loan, prepaying some part in advance will save you from accumulating hefty interests. Hence, saving for the future education of yourself or might be your next generation seems to be smart enough. If you do not have an emergency fund to rely on, you’ll have to resort to other means, like credit cards to pay for your expenses in the event that you lose your job or are unable to work. She is passionate about money savings, investment and finance industry. Everyone wants to retire at some age in life. Saving money has both physical and psychological benefits, so start saving now. Sometimes young people feel as though they’re invincible, but one accident is all that is required to jump start the downward spiral of medical expenses and bills. If you have goals of reaching some college or university, you will also need huge funds. It gives you freedom of choice. Therefore, saving is an important tool that can help you to have financial security for the future. Improve your financial being: Developing a saving habit will improve your life. Can give you a way out from under are such which you can... Upside within a couple of months and error, and you could in. 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