The benefits of saving money

Savings

The benefits of saving money

Published July 25th, 2020 10:06 am

Life is full of surprises. You never know what will happen tomorrow. You may lose your job or might get struck by an unfortunate accident. Such uncertainties require a “backstop”. This “backstop” brings a sense of control over life events.

Saving on a regular basis brings financial security in our lives. If you decide to set aside a fixed amount every month, you won’t have to worry about your income being able to cover your unexpected expenses. Assume you get involved in a car accident and fracture your arm. Now if you don’t have a medical insurance or a very high income, then funding the medical facilities can become a serious issue. However, if you are prepared with a good amount already saved then no worries!

Apart from uncertainties, savings are also essential for securing our future. We all know that at some point we will get old and won’t be able to work. We are also aware of the fact that in Pakistan we do not have any social security net, except for in some areas like Armed Forces. Hence, most of us need to plan for retirement. If we save enough, we can make our post-retirement lives stress free.

Saving money habitually, even if it’s in small amounts, will enable us to make big purchases someday. For example, it can help us buy valuable possessions like a house or a car. This way we won’t have to worry about arranging finances right at that moment or take loans and land in debt for that purpose.

Above all, the cash we save provides us with the “seed money” required for investments. Investment products are a smart way to grow money and build wealth. Some products provide steady growth, whereas some provide fluctuating growth. Either way investing is a helpful tool. Nevertheless, if you don’t invest and grow your money, the value of your savings will be reduced. The reason behind this is the increase in general prices.

There are so many benefits of saving money for everyone. If you aren’t already doing so, then start NOW by using some basic steps for budgeting. To read more on how to save go on

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