Cars, houses, a college education, holidays, and medical bills all have something in common. They cost money. As time goes on, we need lots of it as inflation and greed have forced the prices of services and goods upwards.
It is not enough to have money, it is also important to save some of it. There are always unexpected expenses like wedding gifts, funerals and birthdays. Even if we give a token, we need to save in order to pay for gifts or donations.
The next most important reason we need to save is for medical expenses. This is sometimes covered by medical cards and employers but we always need some spare cash for the things they don’t cover or to pay the premiums. Savings also help pay for the quality of the medical services we need.
There are also other benefits of savings which are pleasurable. We could save to make the trip of a lifetime to a place we want to visit. Savings could help realise the world tour we dreamed of as a kid. Saving money enables us to make timely investments when the opportunity knocks. We will not be able to grab that condo, share issue or car on offer if we do not have spare cash.
Saving money helps us pay for our dream home without paying too much interest to the bank. We could save from a young age and be surprised to see how much we have at the end. We need to save to be able to afford a college education for ourselves and our future generations. It helps us to get a better job.
Finally, the habit of saving creates a sense of emotional and mental security that is essential in today’s world. We need that assurance that we are safe financially to enable us to lead a normal life. Many people today suffer from tremendous stress if they have financial insecurity. It is one of the causes of marital problems and can cause a rift between siblings and extended family when you are unable to meet your financial obligations.
Thus, the habit of saving money is essential to live a happy life.