why do we have to save money
It is important to have an set aside to cover. This could cover an unexpected car repair, your emergency appendectomy or a sudden job loss. Ideally, your emergency fund should be about three to six months of your expenses. If you are just starting out you should put aside at least $1000. 00 for this. In addition to your emergency fund, you need to make sure you have a plan and good insurance in place to help you survive the
in your life. Once you are out of debt, you should work on bringing your emergency fund up to between six to twelve months of your income. If you are single or living on just one income, you may want to go with a larger emergency fund. P Roberge says that you could label that savings account your build wealth fund, or your freedom fund. The importance of saving money here is to give you cash reserves that you can use when and how you want. 2.
Saving provides financial security I love saving money because it means financial security, says Kara Perez, who founded, a resource that aims to empower women by providing them with the tools and education to reach their financial goals. Plain and simple, having money makes your life easier, Perez says. I save because I want my future self to have the same great lifestyle I have now, and I don t want to get caught in a financial emergency. Perez recommends putting money in both a liquid savings account where you can keep cash for unexpected expenses and emergencies, as well as putting money into something like a brokerage account where you can invest for the future. 3. Saving means you can take calculated risks Part of the importance of saving money is to build cash reserves so you can take calculated risks with less worry.
If you don t have any savings, it may be harder to pursue certain passions. Take starting a business, for example. To be a small business owner, you ll need financial backing to get it off the ground. But if you set a savings goal and contribute to your savings each month, you can explore new opportunities, even if they may temporarily impact your earnings (if you set off as a small business owner, paychecks could be slow to come at the start). Saving gives you the freedom to live life on your own terms, says Matt Becker, a certified financial planner and the founder of, a financial planning practice focused on new parents. When I lost my job three years ago, my wife and I used that as an opportunity to start the businesses we d been dreaming about, rather than scrambling to find another paycheck as quickly as possible, Becker says.
We could only make that decision because of the years we d spent building our savings. The importance of saving money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things. Pretty good reasons to save money, right? If you re convinced as to why you should save money, you can get in a savings groove by opening an. And good news: It doesn t take a lifestyle overhaul to become a saver. There are, which you can start practicing today. Once you re in the habit of saving, you ll forget there was ever a time when you didn t save.
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