This article will enlighten you on 5 reasons why you need to start saving! Although you may have a lot of expenses but its very important you save a percentage of your income. As you read on, you will discover why saving is important and why you must do so now.
5 Reasons Why You Need to Start Saving
Saving in a time like this requires self discipline to fully manage your budgets. Most people prefer spending with little or no thought about tomorrow, hence they end up in severe lack and debts.
There are 5 reasons why you need to start saving. They include;
This is one important reason why you should start saving and be consistent in it. A lot of persons in the US cannot afford the least furniture in their apartment because of financial dependence on fellow human beings.
To the level of your income, save up either monthly or weekly. The issue of poverty will be alleviated if more than half of the population will start saving.
We should take our health so serious like we do for the quest of money. Your body provides you with signs and symptoms whenever its breakdown is about to occur, only in rare cases are you caught unaware.
Moreso, saving for medical emergencies is important and could avoid borrowing to pay for hospital bills, drugs, operations, etc. Not only when you have a pregnant wife or already diagnosed ailments will you start saving, save ahead of emergencies.
Planning Your Retirement
This is another reason why you need to save. Time can get so tricky to help us forget retirement will eventually come. As the income comes now, save for your retirement journey, rather than lavishing it on irrelevant jewelries, clothing, houses and cars.
As a salary earner or an entrepreneur, your goal should be to have plenty in your night season. Night season is a time of retirement when you become feeble and dependent. In your night season you should already have more than enough to push you through. Start saving for your night season!
Get Out of Debts
A lot of persons have entered into huge debts and are stranded today due to lack of savings. Ensure you save weekly or monthly to be able to pay up. As a businessman borrowing to invest in your business is not a crime. A productive business will never go bankrupt so ensure you have savings to pay up old and new debts.
To Build Wealth
To be able to build wealth, one must ensure you save daily, weekly and monthly. Most of the greatest assets was not acquired in a day. Make savings your habit today!
For an entrepreneur who earns over a $1000 in a week, you’ll be able to save up to a substantial amount that can purchase either a house or a car. To the level of income, save up to 10% daily, weekly or monthly.
3 Tips for Saving Effectively
Having known why you need to save, you may be interested in knowing how to save effectively. Below are three tips that will help you.
Eliminate Your Debts
For you to be efficient in saving, Eliminate your debts. A debtor who saves will end up saving amidst. Debts can be easy to acquire but tough to repay. Even as you engage in saving, be sure to eliminate your debts before gathering money.
Set Savings Goal
How much do you plan on saving at the end of each month or year ? This should be a benchmark for your saving journey. Once you begin to save, set a goal and work towards earning that figure.
Analyze Your Spending
While spending, take a full grasp of your debit alerts. You should be able to spend judiciously. Your ability to analyze your spending at the end of a month or year will enable you to save better next time.
Where is the safest place to save?
Most persons would rather save their money in an enclosed box than deposit it in a Bank.
The safest place to save your money is in an accredited bank under “savings account”. A savings account is an interest-bearing deposit account.
The bank also issue a Certificate of Deposit. CDs differ from savings account because the money must remain untouched for the entirety of their term or risk penalty fees or less interest.
What are the types of Bank Account?
Before you’ll successfully open an account, ensure you select a bank account. There are types of Bank account we can open. They include;
- Savings account
- Current account
- Fixed deposit account
- High yield saving account
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