It is a time when jobs are scarce and money is hard to come by; so any reasons for saving money could be construed as a fairy tale. But where there is a will, there is a way, and recession or not, you must realize the value of saving money. Not for nothing has it been said that a penny saved is a penny earned, so tighten your belt, and check out these five reasons to save money
Reasons To Save Money
- For a rainy day: The most important reason to save money is to protect yourself medical emergencies and other contingencies. When you know you have a nest egg that you can fall back on, you avoid a lot of stress and tension. And most important of all, you avoid having to borrow money when an emergency arises. Borrowing money puts you deep in debt, what with having to pay back not just the principal, but a high interest as well.
- For a specific expense: When you want a home or a car or even a smaller object like a piece of furniture, the best way to buy it is to save some money every now and then towards purchasing it. When you are dedicated to the job, you don’t have to borrow too much because your down payment is high. The more you want the asset, the more ways you will find to save money for it.
- Just a little a day: And then there is the daily savings, the pennies and nickels kind. All you have to do is empty your pockets of change every day and put them all in a piggybank. You’d be surprised at how much money the kitty holds at the end of a month. Treat yourself and your family to a fun time with all the money you’ve saved without having to break a sweat or break the bank.
- To make more money: When you save money, it earns interest. This means you are actually making money by doing nothing at all. So the more money you save, the more money you make. Put aside a little of your earnings every month in an account that earns a decent interest and adds to your savings.
- To avoid spending more than you have to: When you pay off your bills in their entirety every month, that adds to your savings as well, because you avoid paying large sums as interest in the future. When you make a habit of using your credit card wisely and only running up bills that you can pay off at the end of each billing cycle, you save yourself a lot of money.