Good Write up on why to save money..
1. Your Retirement
Retirement is one of the most important things for saving. Even if you are on your first job, and aren't earning a whole lot, you should be putting away a little each month towards your retirement fund. If you are employed, 25% of your basic salary as well as an equal contribution by your employer will go into your provident fund account. This becomes a sort of mandatory saving scheme by law. It doesn't matter how much you really contribute each month, what matters is the consistency of contribution. If you don't have a PF contribution, aim at stacking away at least 10% of your paycheck as a nest egg for your retirement.
2. An Emergency
You may think that saving for a specific goal may be the only reason to save, but saving for a rainy day is equally important. An emergency usually occurs without any warning. These unpredictable circumstances, such as an accident or a medical condition might call for a large sum of money without any prior notice. If you don't have this compound handy, you might find yourself in debt. That is why saving for emergencies are important.
3. Debt
Avoiding debt is another reason you should consider saving. In this day and age, almost everyone has debt looming over their heads in the form of home loans, car loans, personal loans, education loans, credit card debt, etc. The fact of the matter is that while it is easy to get yourself into loans, it is difficult to come out of them. Saving today may help you out of debt tomorrow.
4. Entertainment
You know what they say about all work and no play. Entertainment is on the list of reasons to save, because what is life without a little fun? As fun as it can be, entertainment may also be an expensive proposition. For instance, these days it isn't cheap to go out on a nice dinner and a movie with your friends. Vacations too come under entertainment and travel can truly enrich your mind, body and soul. Put away a little each month towards a vacation fund and once every year, you will be able to enjoy for a truly memorable vacation.
5. Inflation and expensive things
You may think that only rich people can afford to buy themselves expensive things, but that isn't the case. If you save every month for opulent purchases, you too can buy yourself something aspirational. Usually, we tend to spend money on things without giving it a second thought. It is often this second thought or thinking twice as they say, that saves you from making unnecessary purchases. If you have been dreaming about a designer dress, the new iPhone or the Samsung Galaxy Tab S, save up for it and treat yourself to it in a few months time!
Remember, that with every new financial year, inflation seems to hit everyday people hard. Learn to factor that into your saving plans as well.
6. Presents
Imagine being able to treat your parents or your spouse to that much-deserved vacation or a new car. Saving up to buy a special someone a special gift is a great reason for you to start saving your hard-earned cash. You could also do a good deed for the day and donate some money to a charitable cause. There is no joy quite like that.
7. To buy a new set of wheels
If you are planning to upgrade your standard of living and buy a new car, you will probably need some cash for a down payment. Save today to be able to afford your dream car tomorrow!
8. To pay for a house
Interest rates on home loans today are quite high. Then there's the need for the down payment on your dream home. The only way to accumulate this much capital is by saving for a few years. When you are able to afford a significantly higher amount on a down payment towards your home, your interest rates will be better, and you will be able to afford a better home.
9. Sinking funds
Consider saving in order to set up your sinking funds. A sinking fund refers to the sum of money that you set aside for the purpose of any future improvements or repairs you might incur on your home, car or other possessions. Saving for sinking funds will save you the hassle of digging into your emergency saving for any household repairs.
10. Your child's education
Education is expensive these days. If you have kids, you want to give them the very best. A specialized education can be costly and if you don't save for it now, you may not have the capital to invest when the time comes.
Always use foresight when you are saving. Set future financial goals for yourself every step of the way and try your best to achieve them through contentiously saving money. Your future self will thank you for it! more
Retirement is one of the most important things for saving. Even if you are on your first job, and aren't earning a whole lot, you should be putting away a little each month towards your retirement fund. If you are employed, 25% of your basic salary as well as an equal contribution by your employer will go into your provident fund account. This becomes a sort of mandatory saving scheme by law. It doesn't matter how much you really contribute each month, what matters is the consistency of contribution. If you don't have a PF contribution, aim at stacking away at least 10% of your paycheck as a nest egg for your retirement.
2. An Emergency
You may think that saving for a specific goal may be the only reason to save, but saving for a rainy day is equally important. An emergency usually occurs without any warning. These unpredictable circumstances, such as an accident or a medical condition might call for a large sum of money without any prior notice. If you don't have this compound handy, you might find yourself in debt. That is why saving for emergencies are important.
3. Debt
Avoiding debt is another reason you should consider saving. In this day and age, almost everyone has debt looming over their heads in the form of home loans, car loans, personal loans, education loans, credit card debt, etc. The fact of the matter is that while it is easy to get yourself into loans, it is difficult to come out of them. Saving today may help you out of debt tomorrow.
4. Entertainment
You know what they say about all work and no play. Entertainment is on the list of reasons to save, because what is life without a little fun? As fun as it can be, entertainment may also be an expensive proposition. For instance, these days it isn't cheap to go out on a nice dinner and a movie with your friends. Vacations too come under entertainment and travel can truly enrich your mind, body and soul. Put away a little each month towards a vacation fund and once every year, you will be able to enjoy for a truly memorable vacation.
5. Inflation and expensive things
You may think that only rich people can afford to buy themselves expensive things, but that isn't the case. If you save every month for opulent purchases, you too can buy yourself something aspirational. Usually, we tend to spend money on things without giving it a second thought. It is often this second thought or thinking twice as they say, that saves you from making unnecessary purchases. If you have been dreaming about a designer dress, the new iPhone or the Samsung Galaxy Tab S, save up for it and treat yourself to it in a few months time!
Remember, that with every new financial year, inflation seems to hit everyday people hard. Learn to factor that into your saving plans as well.
6. Presents
Imagine being able to treat your parents or your spouse to that much-deserved vacation or a new car. Saving up to buy a special someone a special gift is a great reason for you to start saving your hard-earned cash. You could also do a good deed for the day and donate some money to a charitable cause. There is no joy quite like that.
7. To buy a new set of wheels
If you are planning to upgrade your standard of living and buy a new car, you will probably need some cash for a down payment. Save today to be able to afford your dream car tomorrow!
8. To pay for a house
Interest rates on home loans today are quite high. Then there's the need for the down payment on your dream home. The only way to accumulate this much capital is by saving for a few years. When you are able to afford a significantly higher amount on a down payment towards your home, your interest rates will be better, and you will be able to afford a better home.
9. Sinking funds
Consider saving in order to set up your sinking funds. A sinking fund refers to the sum of money that you set aside for the purpose of any future improvements or repairs you might incur on your home, car or other possessions. Saving for sinking funds will save you the hassle of digging into your emergency saving for any household repairs.
10. Your child's education
Education is expensive these days. If you have kids, you want to give them the very best. A specialized education can be costly and if you don't save for it now, you may not have the capital to invest when the time comes.
Always use foresight when you are saving. Set future financial goals for yourself every step of the way and try your best to achieve them through contentiously saving money. Your future self will thank you for it! more
Viewed by 95
So well enumerated....but most of them are not needed by those who have retired and fulfilled their duties towards their children.....they should find ways and means of depending the hoarded cash.......I call it hoarded since it has been collected by not nurturing their own needs and saving for a rainy day....but the rainy day is now when you have retired....why not use the same to be happy and enjoy.......No? It would be great if you could also enumerate the heading under which the retired people should utilise their child's heritage.....possible? more
Aug 22
