There are many reasons why having a savings account is important. It is going to make your future more manageable, it can reduce the stress and the pressure that you feel. Making savings part of your everyday life is a great way to live.
Reasons for savings
- Having savings in an emergency fund is important; it allows you to manage when life sends an unexpected bill. It gives you the freedom not to need to rush out and secure a short-term loan or to charge a high interest credit card with the bill, because you prepare for the unexpected.
- Retirement is an expense that is more enjoyable if you have some money with which you are able to afford to live. This enables your retirement that is more on your terms, rather than when you have the money to retire. It can mean giving up work at an age that meets your needs and not when your state pension is available.
- Having savings reduces the need to use credit cards, payday lenders and other high interest forms of credit. Short-term credit options mean you pay high amounts of interest and charges for not having savings to pay for the items that you maybe want or need.
- Saving is important if you are considering buying a home in the future, gone are the days when it was possible to get a mortgage for more than the house is worth. You need to save up a minimum of 5% of the value of the home and on top of these you might need to pay for legal and other moving costs.
- Saving for repairs to your home means that when you need to make repairs or maintenance to your home then you have the money saved with which you can do the work. Home repairs is expensive and putting the money away can take the pressure off, knowing that you have the money for the repair work.
- If you want to experience what the world has to offer, then saving for a holiday is the only option when it comes to a vacation. Holiday’s are a luxury and not a necessity; if you haven’t the money then it does not go on the list of items to spend money on.
- Having savings is a great way to remove the need for applying for short-term loans to make ends meet. They are expensive and are not conducive of living within your means; these loans can quickly become out of control and take over any spare money that you might have had before.
Do not leave yourself or your family unprotected against financial storms… Build up savings.
Therefore, if you haven’t already realised, I think saving money is important, it can allow you to have more freedom, it gives you access to a new and exciting world of paying for unexpected bills or saving for your future making the money in your life to work harder than you might ever imagined.