Should I spend or save this money? Is a tough question we decide when we have an income. We should all understand that saving is a big part of a good financial plan.
By nature, most of us are spenders, but as we get older, we would realize the importance of saving money. There is strength and security in having money available due to unforeseen circumstances. I’ve learned that it’s not always a good idea to buy anything just because you can. It is impossible to overstate the value of saving money. Saving money is one of the better financial practices you can develop because of its many proven advantages.
We can’t always predict the unexpected, however, we can plan for it. When unexpected costs arise, such as visits to the emergency department or faulty water heaters, getting a contingency in place will help prevent troublesome loans or credit card debt. Saving three to six months’ worth of bills is a good rule of thumb to have on hand.
Our willingness to work and earn more money to sustain our lives inevitably declines as we get older. Life expectancy has improved because of today’s healthcare and technological advances, causing further funds to live comfortably. When job advances are no longer possible, saving now would help you.
Marriage is an example of a major case. I’m traveling around the country. Buying a house is a big step. Having a kid is a big deal. None of these are cheap. Saving for those occasions reduces the burden that comes with them and encourages you to concentrate on what really matters.
Always remember, Tomorrow can be better it all depends on you.