Saving money is always a wise decision! Do you know why? Well, that’s a truth that you cannot buy everything with money, but of course, it can help you buy most of the things! This simple sentence is enough to understand the importance of saving money. However, for a better understanding of the same, let us read further.
Saving Money – What Does that Mean?
Let us know and understand the meaning of saving money through the definitions given below:
Saving Money: Definitions
- Saving money simply means depositing some amount of money from your regular income so that the saved amount can be used at the time of urgency or for any other future use.
- The amount of money that is left after spending on basic and essential expenditures can be referred as savings or saved money.
- Saving money can also be defined as any process that includes saving or keeping aside some portion from your income in the form of bank deposits, investment in mutual funds, etc., to fulfill any future financial needs.
- Savings can also mean a cut or reduction expenditure, especially wasteful expenditures.
- Saving is that part of income that is not spent or spent for any deferred consumption.
- Savings includes any part of income paid in advance to fulfill or close any future monetary obligation. Example: pre-payment of housing loan (mortgaged home).
- Saving money means a clever usage of money and a right balance between your savings and expenses. When you save money, you get to learn the value of spending money at the right time! Saving money not only helps you at the time of emergencies but also helps build capital assets such as buying a home, land, jewelry, etc.
- Saving money means ‘To keep aside certain amount of money for future expenses or to meet any present need such as buying a home”.
Actually, it is up to you that whether you use your savings for any present needs (such a buying a home, or purchasing a car, or renovation of your home) or save it to use later in any future expenses (such a child’s marriage, pension post retirement).
Saving Money Means a Better Life. Saving money is the first step towards achieving a happy and better life! It is the process of using money cleverly so that you are able to build capital by saving a portion from your income for any future or present financial needs.
Why is it important to save money?
If you do not believe in saving money and spend whatever you earn, we request you to go through the given below points that convince you about the benefits earn through saving money.
1. Provides a Happier & Better Life – When you are financially stable, you stay relaxed and tension-free. Financial stability comes from saving money. When you have some amount deposited in your savings account, you always stay happy and calm as you know you can take out money and spend it any time in future when there is the need of hour for doing so! Be it medical insurance, home loan installments or anything else, the saved money can be used intelligently in many ways, thus, making way for a better and happier life!
2. Fulfills Present Needs as Well as Future Needs – You never know when the need for money arises! Be it an emergency medical condition or just an appealing sale, you need to have money to fulfill your needs! Saving money never disappoints you. Rather, it opportune you to spend money when you actually want to do so.
3. Helps You Earn Profit at the Time of Inflation – Many times, the saved money can be used in investments as well. You can invest your saved money in gold, properties, bank schemes and many other beneficial plans and schemes. These investments come as a great help at the time of inflation. When the prices rise, your investments also become more valuable because of the inflated rates. Thus, you can earn profit by selling at the right time!
4. Increases Possibilities for Fulfillment of Financial Goals – No financial goal can be achieved without money in hand! Moreover, you ought to have money at the right time if you want to attain any financial goal in set period of time. The important point to note is that if you keep a financial goal, keep money too! And of course, the best way for doing so is to save from your present income.
5. Blesses You with Happy Retirement – The post-retirement period of your life can be the most interesting and relaxing phase, provided you have got enough money in your account for various purposes. Retirement can be best enjoyed through the saved money that has been invested much earlier in the suitable schemes that ripe during your retirement phase. If you invest your saved money in good health plans, insurance, etc, you will not have to worry for any issue during your retirement. Most importantly, you will not be dependent on others.
6. Safeguards You during Currency Fluctuation – Currency fluctuation is an unpredictable condition that can arise anytime. The best way to protect ourselves during such tough economic times is to save money on a regular basis. Needless to mention, the saved amount can be utilized at the time of need.
7. Daily General Expenses Will Increase in the Future, So Saving Money Always Helps – Be it the general grocery items, the construction material, household items or anything else, your daily general expenses increases with time. For example, if you are a newlywed couple, soon you will plan your family and will have a baby. In a few years, your child will start going to school and again, after several years, he or she will go for higher studies. Life keeps on changing and therefore, our expenses keep on changing too. Expenses grow each day! So a wise decision is to save money for future use.
8. Benefits of Educational and Financial Aid to Children – Be it higher studies, enrollment into good schools or something else, your children are dependent on you for their various financial needs too. Saving some money regularly from your income will aid you in supporting your children in their financial and educational matters.
9. Good Financial Status as well as Social Status – People who save money at the right time do not have to seek financial help from others at the needy times. Also, the saved money soon accumulates into a valuable amount that can be used in significant investments. These investments and wise financial decisions help you attain a good social and financial status in society.
10. Escape from Wasteful Expenditure – When you start saving and accumulating money, you automatically protect yourself from being a spendthrift. You stop spending money wastefully or needlessly.
11. Become Rich – You should never underestimate the power of compounding. When you save a sum of money in a bank, you get interest. If the interest earned is reinvested, then the amount of re-invested interest will earn you more money. You money has the ability to generate income, and re-invested money generates its own income. In this way, you money multiplies over a period of time and you can become rich.
Saving Money is the Best & Easiest Way to Increase Your Source of Income! Saving money ensures a happy, independent and relaxed life along with a financially secured future! Hence, all of us should save some amount of money. Once you are convinced that saving money is important, you can further read on handy tips on saving money.