One aspect of money matters is saving. Savings means foregoing expenditure today so that you will have something to spend in the future. Perhaps this is why it is hard for many of us to save. It requires denying ourselves something we want today and our society is not exactly encouraging this. Because we live in a culture of instant gratification, most people spend all, or more than all, their entire income straightaway.
Below are three good reasons to save.
- Savings provide a cushion to enable us to meet the cost of unexpected events such as loss of employment, major repairs or sudden illness.
- Accumulated savings provide a resource for investing for your family’s future.
- Savings should be accumulated to enable you to purchase your next car, new furniture or expensive items without having to resort to credit.
How to start saving.
- First of all, you need to establish the habit. Consistently put aside a proportion of your monthly income into some sort of savings account. The amount you are able to put aside doesn’t matter; what is important is that you establish a regular pattern of savings.
- It helps to be disciplined here, and savings that are deducted directly from your salary cheque or bank account are easier to maintain.
- As you save, you will discover what bankers have known for a long time- the benefits of interest. Money will be working for you rather than against you.
So try and begin right away.