Top 10 reason why you should start saving money

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Should I Save Money ?

You must have heard Saving is a good habit, Save Money for tomorrow, Saving is important. But do you really know why saving money is so important and how a small habit of saving can do wonders. Today we are going to discuss about importance of saving money and how it affects our present and future. Many of us love to live their present and enjoy present moments without planning for future but this article may change you thinking completely.

Save to get feeling of Comfort

Money saved by you gives you feeling of comfort or we can say you feel good as you can use it at the time of need in any manner you want. People feel safe about their present and future when they have a healthy bank balance.

Save to achieve Financial Goals

You need to save money to do something in future which requires lot of money or regular money such as higher education of your children or marriage of your daughter (if you have a daughter) or taking care of your old parents when they will stop earning. Putting small amount on regular basis can make a corpus for you that can be used to achieve your financial goal in future.

To meet out uncertain expenses

Expense can come in any form and can put you in financial trouble if you are not prepared for such uncertain expenses. Suppose your car is not working and need repair. Your home needs some repair due to leakage or need to be white washed or need to buy Air Conditioner as current one is not working. You should save some money from your earning for such uncertain expense which come from nowhere.

To meet medical emergency

Medical emergency comes without ringing bells. For example, you or somebody in your family fall sick or met with an unfortunate accident and need to be admitted in hospital and you don’t have any health insurance or due to some reason your health insurance is not applicable in this situation. Heavy bills of hospitals will put you in debts if you don’t have healthy bank balance. Medical emergency can come to anybody and at that time your savings will save you in such bad times.

Sudden Job Loss

Suppose you come to your office and your boss fired you all of sudden and asked you not to come by tomorrow. Getting another job is not so easy and in between what will you do? From where you will pay your EMIs, regular household expense, School fee of your child or maintain the same life style which you were maintaining when you were in service? Would you take personal loan? But who will give you loan if you don’t have job.  In such situation only your saved money will help you. To face such situation you should take out some portion on regular basis from your active income when you are in service and should make an emergency fund.

To go on holiday tour with family

You love to go on holiday vacation but your salary or income don’t allow you to go. You dream to go on foreign tour with your family but who will finance your trip to abroad. Taking personal loans to live your dream life is not a good decision. You should make a habit of saving money to make such dream come true.

To make down payment of Home Loan or Car Loan

Are you planning to buy a home or a car? Don’t you have heard about down payment? When you take loan for your home or car, banks will never finance you 100%. They will finance upto 85% or 90% depending upon the particular bank policy but rest 15% or 10% will be arranged by you from your own sources. That time saving made by you come handy to make down payment for your car loan or home loan.

To reduce your debt

Taking more debts to reduce your earlier debt is no logic. Only money can reduce your debts. Your liabilities can be reduced by putting money in them and good habit of saving will take your out debt trap in long run.

To see magic of compounding

Your regular savings invested in good investment category will give you good return and if you don’t put out interest and reinvest your return then you will see the magic of compounding as you will get interest on your interest and a healthy corpus will get generated with a fast speed by would never have imagined.

For Financial Independence

You feel bored about your 9 to 5 job. You don’t want to work in company where you are today. You keep waiting for weekend whole week and get bored again on Monday when you have to go back to that same company. If you feel like that then you are not alone. In today’s time most of us people in job world, think in the same manner. Your urge to not to go office bring ideas about “Passive Income” (read our article on Passive Income) or to become an entrepreneur and start your own business. There is one more popular concept called “Early retirement”. When all these things are going on in your mind why don’t you plan and start saving to achieve them. To start a business, you need capital, emergency fund for your family (in situations if you get failed). To retire early you need sources that can generate almost equal amount of regular income which you were getting from your salary. Savings taken out from source of your active income can help you in converting your plans in reality.

We have discussed here top 10 reasons to start saving. There can be more reason depending upon you but one thing is there that you need to start by your own because practice can be converted in habits and it should come out from inner soul. To make a better future and enjoy life to its optimum level start saving money from today.