A Be the Budget article on the importance of saving states there are “countless” reasons to save since savings offer protection and greater financial freedom. However, it can be difficult to take saving from being a notion to it being a regular habit.
There are a number of rather serious reasons to save money on a regular basis. An emergency fund can be a lifesaver when something unexpected happens. You can save money for big-ticket items, and this does not only include a car or a house; you can also think of a college education as a big-ticket item, even if it isn’t a physical object.
Some people find it easier to save when they think about how they want to be able to afford the things they enjoy in life. You can save specifically for things like a vacation or an expensive piece of clothing or jewelry, but this only makes sense once you have set aside money for emergencies. If the desire to get to the fun stuff motivates you to put aside money for practical reasons first, then let this idea help you move forward to increase your savings.
The article brings up some reasons for putting money aside that are not typically included when people talk about the importance of saving. Many people want to save money and secure their finances to leave something substantial for their heirs. There are other people who may not only be thinking about their heirs but also about charitable causes that really matter to them. There are different ways to leave a financial legacy, but it really isn’t possible if you do not have your own finances in order.
In the last minutes of this CNBC report, an investment manager discusses how economic uncertainty is likely to cause people to save more.
Be the Budget concludes:
“Saving money is important because it provides security, stress relief, and freedom. And while there are countless reasons to save, you just need to find a reason that resonates with you.”