When you can get credit so easy, why would anyone want to save money? The importance of saving money: It allows you to enjoy and feel secure in your life. If you have cash reserved for emergencies, business collapse, or for any disaster that maybe you can try new things to get rid out of misfortune or start your new life. Saving money takes discipline. There are many simple ways to save money that you can start practicing today.
Financially independent doesn’t mean you are going to rich, but if you are not dependent on any other person it will make you feel rich actually. If you have savings that you can rely upon than you are rich because if you depend on others then you feel ashamed and it directly hit your ego and confidence.
Buy a Home
Its everyone’s dream to buy their own house. And you can only fulfill your dream if you are saving money for your bright future. You won’t get a house unless you have the down payment, and you are not allowed to borrow a down payment. You must have the down payment of at least 5% of the purchase price of the house, and then the bank will consider lending you the remaining 95% of the house.
Get Out of Debts
You should save up $500 to $1000 as a reserved, at least. Because when unexpected and sudden incidents happen, you can resolve any problem using your reserve funds without using credit cards. Getting out of debt makes you feel that aren’t you spending too much? Maintaining reserve funds will also help you to think that if your expenditure is getting out of hand.
You can Lose Your job
Everyone thinks that his or her job is secure. We all know that a sudden incident can happen to anyone at one time, simply we can be fired from our job or due to some swear reasons our job can be quit. You can suddenly unemployed or your business can be bankrupt, maybe you physically or psychologically sick. Any of these things can happen to you. You will not get Employment Insurance until you have been unemployed for 6 weeks.
Saving for your retirement
You should start saving money for your retirement life as early as possible. If you don’t have a house and live in a rental apartment than its the best time to own your own house. It will also help you to start your own business after you retired from the job. If you are tired of the noise and the pollution of cities than you can simply move your house to the hillside and can spend the rest of your life fulfilling your wish.
Save money for your travel
Who doesn’t love traveling? We all love to go and see the world more than we have. Only If you are financially strong or you have savings then you are freer to satisfy your wanderlust.
Save For Emergency Funds
It’s very important to have emergency funds that can cover your sudden expenses and loss in your bad time. According to a survey, more than 20 percent of Americans don’t even have an extra $400 savings that can recover them from the emergency.