Very few people around the world have good saving habits. Of course, stagnant wages, rising cost of living and the general lack of financial knowledge are some of the factors which prevent people from saving money. However, putting away a few dollars or as much as possible every month is necessary. But, what is the necessity of saving money? It is necessary for a person’s sanity, happiness and independence.
One of the most salient reasons to saving money is for the increase of happiness. It is not possible to work and earn till one dies. After a number of years, it becomes necessary to stop working and simply enjoy what time one has in the world. Many retirees claim the larger their savings the happier they are. This is because they are able to enjoy life and live it to the fullest because they have no money worries. There is a saying that money does not bring one, happiness. Although it is true, not saving money for retirement can only bring unhappiness. So, in one way, money and saving money, does bring happiness in retirement.
Emergencies are unpredictable, hence the word emergency. There is no telling what may occur in the future. Emergencies do not only include health issues. It also includes repairs to a house, car or anything. If a person has not saved money or put aside something for emergencies, this person will find it extremely difficult to manage in an emergency. Medical bills are expensive. Insurance may cover only a certain percentage. What happens if the person does not have insurance and no money saved for emergencies? This means the person has to do without. Sometimes, life saving emergencies occurs and a person can forever blame himself if there is no money saved for these emergencies.
Saving money is necessary as it enables individuals to enjoy the finer things in life. This too is necessary for life. Holidays, cruises and other luxuries require money. Day to day expenses cannot cover these luxuries. This is when saved money comes in handy. Of course, this should not be the money saved for emergencies. This should be money saved especially for the finer things in life. One should take at least one overseas trip a year. This should not be a trip where one pays for it for the next five years. It should be one which can be paid off without a worry within the same year.
Saving money is necessary for education. This can be the education of children or the individual’s education. For example, many people wait until retirement to continue higher studies. This costs money. Education is not cheap. Saving money for education is a great investment. It enables one to improve their minds and gives them something to carry forward in order to enhance their lives.
Saving money is something every individual should strive to achieve. It may not be easy with inflation and stagnant wages, but putting aside even a little bit of money can help overcome some great hurdles which are sure to occur in the future.