10 Creative Ways To Make Saving Money Fun. Don’t plan to think about your retirement when you are old. But we can ensure -starting saving at the earliest and the maximum. Your email address will not be published. All this is only possible if you have money and by fulfilling the needs of your family you can bring a smile on their face. Saving money is important because it provides security, stress relief, and freedom. So, if you’re in need of a little money-saving motivation, or just want a further explanation as to why saving money is so important, you are in the right spot. It’s as simple as that. After many years of working, you may want to go on a vacation and tour the world. Do not “think that to save money means to sacrifice the pleasure of life”. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things. 1  In fact, nearly 40% would need to borrow money to cover a $1,000 emergency. The good news is that there’s a great way to eliminate financial stress… just have more money. But save first. In this post, I’m going to take a deeper dive into the importance of saving money, and cover the top 15 reasons to start saving today. The short term is those where money requires regularly in a span of … We may save money to purchase a flat or a car. From there we can easily channelize it in various schemes. Here we will see some of the examples to understand the importance of savings and investment in the life. It is very important for one to financially plan their lives and save money as it matters and is the most important thing for survival. We have to make a budget to distribute our income logically and judicially (not emotionally) among various purposes. Medical facilities: People get quality medical care only when they are able to pay for the services in terms of credit card or cash. Is this true? even send people to our residence and open an account. The importance of savings is to have the ability to do what you love. Save More Money! It will be wise if we down pay the total amount instead of taking a loan from a bank or other financial institutes. Most importantly, the advantages of savings account: – 1)Unforeseen spending – We do not know when an emergency crisis will take place and we will have to arrange a lump sum amount of money. No matter how hard I try, I can’t predict the future; and neither can you. My favorite reason to save money is to travel and explore this world! But if we have not yet any, we will go to any suitable bank as per our choice and open an account. And if your goal is to help others as much as possible, you need to be saving and investing your money consistently. To maintain short-term and mid-term purposes you have to save at least (30-50) % of your income. But if you wait years to start saving, you won’t see any results at all. 1. As a result, we get motivation to do our works. Would your story be one of debt and financial burden for your family? We live in a world where we always have to expect the unexpected. Try it. Which is the best scheme to save and get maximum benefits? You do need to prepare for such occurrences and have the resources you need to fall back on in the way of savings. Due to this, we shall include fruits like apple, walnuts, banana and etc in our daily routine. Early savings may be kept for more time. Saving money is important, because it provides you with financial security. Compound interest is extremely powerful, but you need to give it enough time to work it’s magic. Through savings you can change your life to live like a king or a queen. Mid-term are those which will/may come once or twice within the next 3-7 years. However, we need to know how to grow our savings for a better future. You can check for any practical example – the cost of a pack of biscuit a decade ago, and the cost of the same now, can be significantly more. Remember, money is just a tool you can use to accomplish your goals. In other words, a big pile of savings gives you freedom to quit a job you hate, and pursue your dream career. For more information see our disclosure page. Here are a few reasons why we save: Interest, bonus, profit will be accrued for a longer period. Around 22k in hand per month. Most importantly, here we will indicate our savings. You might be thinking, “Umm…duh!”, but it’s the truth. Most of us are conditioned to earn as much money as we possibly could depending on our capability and once we do earn it we spend it all and enjoy the fruits of our labor. Our savings potentiality is our excess net income after our expenses. Save enough money for the purpose. Additionally, we require money to celebrate various occasions and days along with enjoying some weekends with our love and relation. The importance of saving money cannot be understated. And for that reason, saving up a safety net is a really good idea. The Importance of Saving Money We save, basically, because we can't predict the future. Cokoye . But, if you spend all your money, and never learn to save, you will miss out on this valuable financial opportunity. Let me put it this way, would you rather pay your bills and have $20,000 in savings? Spend your money on things that you care about. Whether you’re 20 years old, or 90 years old, the way you handle your money will leave lasting effects—positive or negative–on your loved ones. (Within the confines of the law, of course). This type of explicit education on saving is a most detailed account I have read so far. And when your money grows, your opportunity to help others financially grows with it. From cars, to boats, to furniture, to big screen tvs, big purchases have a way of wiggling into the lives of the financially unprepared. Net income is generally less than gross income and it, in other words, is our take-home income. Whether it’s helping others, improving your marital finances, leaving a positive financial legacy, or just having a little more fun, you owe it to yourself to prioritize saving. So we have to make old-age provision. But life goes on and the expenditures also. I have a bunch of different savings accounts for my savings so that I can always do a quick inventory of how much I have saved towards each goal. According to a 2019 Bankrate survey, only 18% of Americans said they could live off their savings for six months. With rising costs the value of savings will reduce. We cannot control the rate of return, rate of interest, profit or loss, etc. Well, if they had enough savings, I’m willing to bet that wouldn’t be the case. (Also read factual reasons to save money). If you start saving now, it may be years before you start to see impressive results. It's important to have an emergency fund set aside to cover unexpected expenses. In contrast, if you save and invest your money, your ability to give will grow exponentially with compound interest. (Though, to be honest, elementary, middle and high school are pricey little endeavors these days as well). But why is saving money important? Below-mentioned are a few other reasons as to why savings and investments are important in your life: Only saving money and not making investment can be detrimental to your finances. I mean, my wife is pregnant with our first baby, and we’re already discussing 529 plans and funding our child’s college education. Hence all you can do is save money, yes savings are extremely important. Click here to learn more about an Axos High Yield Savings Account. In this podcast, we remind you of the importance of saving and provide some tips for how to make it a bigger priority. Firstly we need a savings account. Truthfully, there are countless reasons to save money. In India, the savings account rate is the lowest. Generally, we the people open a Savings Account in the bank to save our money. We have to expend or save from this net income. Secondly, we have some monthly fixed expenditures like house rent, electric bill payment, monthly grocery, shopping, etc. College. We have to repair or purchase a new one. I'll be the first to admit that it was never high on my priority list, but we all eventually learn from our mistakes. Money in our pocket or hand cannot be saved. Savings is one of the most important aspects of everyone’s life. You can offer a better life to your family – If you want your family to be happy, money is something that you will need the most. Too many people underestimate the importance of having a savings account. We need money if we want to buy a house/flat/land or build/repair/renovate. And if you’re married, you’ve probably experienced a money fight or two. 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