You just got your first pay cheque or finally got a promotion and are excited but then someone mentions the savings. You do not understand why you need to put away money you worked so hard to earn for what seems to be no apparent reason. Saving your money may sound like a bore and even tedious, but it serves a purpose and can help you get your finances in order. We tell you why you might want to start saving your pennies right now.
Why you should save money
Get out of debt
Nowadays with credit cards and school loans, almost everyone is in debt one way or another. The only guaranteed way to clear this without accruing more debt is through savings and working towards a debt free future. The fastest way to clear your loans is to set aside some cash with that purpose in mind specifically and when it gets to a good amount you can pay your debt in a lump sum. Now this does not mean defaulting on your payments or delaying paying the monthly installments rather paying the lump sum on top of the installments.
Plan for the future.
Living in the now and using up all your hard earned money with bills, shopping and vacations might work and seem okay for now, but down the line, this could have consequences. Living hand to mouth might work right now, but it has been seen to be stressful on an individual. For instance, you could start setting money aside for an event that you hope or plan on having in the future such as a wedding or having kids. This makes you more prepared and ready when the time comes.
You can never know when something will strike whether it is a family member in need of medical attention, an accident or even unexpected weather conditions such as a flood. Emergencies by nature are unexpected and unforeseen and the best thing any of us can be a little prepared for them. Start your emergency fund by setting aside some cash every month and slowly with time it will get to a sizeable amount.
In the dynamic world we live in, what could be true for now might not be tomorrow. Many people have found themselves lacking a job overnight or without the money they thought was their security. It is, therefore, imperative to save your money to insure yourself from such occurrences and ensure you can still afford to cater for the basic needs no matter what.