With credit being such an easy option, a lot of people have already got stuck with debt and other financial issues. Therefore, it is best if you can curtail your spending habits and save more for the future. Today, with inflation being all over the place, it is hard to save money but not impossible. So if you have planned to save from this time onwards, we’ve got your back. The problem with life is that everything is unpredictable, so it is important to save funds, so they can help in an unforeseen event. Here, in this feature, we will guide you through a few strong reasons to save money:
- Become Financially Independent
The first and most essential reason to save money is to become financially independent. While this may seem a little offbeat during the first few years of your career, saving money will help you build a strong future for yourself. Today, the concept of being rich or wealthy is central to how many savings you have. Secondly, when you have a certain amount of money on your side, it will give you the freedom to make your own choices In the future. This means, once you have a certain amount of money in your bank account, you could also be venturing out on a vacation with your friends.
- Buy a Home
Bear in mind, the bank won’t give you any loan unless you don’t have the down payment in hand. You must have the down payment otherwise your loan request will be rejected. If you don’t know, the one payment is around 5% of the total cost of the house. This is when the bank will consider you reliable for issuing the loan amount. As a young student, If you aspire to own your apartment, we recommend you to save money in the student bank accounts because they offer a different savings plan. Once you graduate and have a certain amount of money in your account, you could easily make a handsome deposit.
- Always apply the 50% Rule
If you have a habit of shopping extensively, we’ve got the perfect solution for it. Apply the 50% rule on everything that you buy. This means, if you want to purchase 4 t-shirts for summer, instead you could choose just 2. Similarly, if you want to purchase 2 pairs of sneakers, settling for one will be the right choice. Secondly, don’t shy away from availing discounts and using the coupon codes. Secondly, if you receive a message about a summer sale from a well-known brand, always give it a go. Shopping at discount will save a lot of money throughout the year.
- Buy a Car
Just like you want to buy a new house, you need a down payment to purchase your car as well. You can of course borrow money from the credit card but this will add a strong interest charge to your account. So instead, if you choose to save money and use it later as a down payment, you will eventually kick out the chances of paying any interest amount. When you have your personal car, you won’t have to borrow from a friend or a family member to go somewhere. Secondly, this asset will add more value to your total net worth, so why overlook purchasing it In the future.
- Get Rid of Debt
If you ever indulge in debt, the best way to get rid of it is to use the money you saved. Sounds ironic, right? However, when you don’t have funds aside in your bank account, it will become imperative to consider borrowing more money to pay off the debts from the past. To avoid this from happening, now is the best time to jot down all your debts and pay them off with your savings. Try to control your spending patterns, rely on the basic necessities instead of the luxury as long as all your debts haven’t been paid off. So as soon as you are done with paying off the debts, you can begin to start saving money again.
As discussed earlier, life presents us with unprecedented events, which is why it is crucial to have savings aside. As much as we hope that an emergency wouldn’t occur, still there is a strong chance of it blooming from the middle of nowhere. For example, if you embark on a vacation with your family in another country and one of the family members falls sick, you will have to cater to the medical expenses. Similarly, if you don’t have a health insurance policy for yourself, you will get crumbled under the financial burden all of a sudden. This is why, it is recommended that everyone starts saving money from a younger age, so they can prepare for such happenings in the future.