The importance of saving money is something people should understand as saving money can help make our lives better. Saving money is one of life lessons that everyone should learn and behave. However, saving money might not be easy for some people. Therefore, before starting saving money by various methods and tips, it’s going to be a good beginning if you know what exactly are the important of saving money and how it will benefit you in the long run.
Simply explained, saving is the act of putting money aside for future needs or purchases. In terms of economics, saving entails consuming less today in order to consume more in the future. Having a savings cushion, on the other hand, has a plenty of other advantages, including financial independence, money retirement, money for emergencies, debt-free status, and so on. With one of the most compelling reasons to save money is that it will safeguard you in the event of a financial disaster. It can also assist you in achieving your financial objectives, securing your financial future, and ensuring that you are able to live independent life without the burden of debt hanging over your hands.
Emergencies
Medical emergencies sometimes are unavoidable and unexpected, making saving money for this situation is one of the main reasons why you should start your saving now. With situations and circumstances that are difficult to predict, life may throw you some unpleasant surprises in the form of medical emergencies and health concerns. Ideally, you should set aside money for an emergency fund that is entirely for medical and health. Make sure you only use that money for necessary emergencies and nothing else because illnesses can strike at any time, and it's always the best to always prepare rather than to worry about money afterwards or to compromise the quality of treatment due to a lack of funds which sometimes leading to trauma and depression.
In addition to health problems, you might probably face other emergency situations that costs a lot of money to spend in order to work that problem out. Therefore, saving money for emergency situations is one of the top reasons why saving money is important.
Retirement
Retirement may be seen by some as a distant matter. But it can actually be a nightmare for many people who are unprepared and don't set aside their money for retirement. This is something that everyone, regardless of age, should be planning for, which means that starting to save money now should be high on your priority list. You can get interest from saving by earning annually interest from you account.
Education
Education is one of the most important things in living in society, but education can be inaccessible to some people because tuition fee is quite expensive. As a result, people from poor families may lack the opportunity to study or may be in debt from student loans. Even you may not be able to save enough to pay for your full education, putting yourself in the position of having as little debt as possible will make paying it off much easier when the time comes. To make life better from learning in the classroom, you should save a portion of your daily expenses for education. Even though, this education money is not for yourself, may be for your son, daughter, or anyone, saving money for education is still worth doing as higher education might help advance in careers.
Financial independence
Gaining financial independence is one of the most essential motivations to save money. This implies that you are not entirely reliant on your monthly salary to support your existing lifestyle. You may make important life decisions without fear if you have adequate savings to fall back on. This could mean being able to take vacations whenever you want, quitting your old job and change occupations, starting your own business, investing in asset, helping others, do whatever you want without concerning about money, or, more importantly these days, retiring when you want rather than working because you have to.
Buying home and car
Purchasing a home and a car is one of the most major financial decisions a person can make. Even if you want to take out a home loan, you must put down a portion of the purchase price as a down payment which sometimes can be a lot of money depending on other factors, and only then banks will consider lending you the rest of the money. Only if you have enough money, you will be able to pay this. Furthermore, if you can pay a portion of, or the full sum, yourself, you will save a lot of money on interest on your house loan, which you can put toward relocating, repairs, or decor. As well as car or any other expensive items, you’ll need to set aside some money. You won't have to work for years to pay off the high-interest rates on a new car if you save money.
Travel
Traveling may be a dream that everyone wants. Each place has its different beauty and its charm. It is a great opportunity to explore and learn about different cultures and foods, as well as a great method to destress from stressful situations in life. The majority of us desire to travel the globe. However, a vacation to other continents like the United States, Australia, Asia, or Europe, on the other hand, is very expensive. It might get much more expensive if you love staying in luxury hotels or travel a lot. One of the nicest things you can do is save money for traveling. If you already have an idea where you want to go, it is critical to calculate the cost of travel and budget accordingly. However, there are many promotions (โปร) about travel that may impress you and help you pay less than before.
To make your objectives of saving and its importance become more crystal, here are the simple ways you can do to start saving during your life time.
- Keep track of your expenses
To begin saving money, you must first record and determine how much you spend each day. Keep a record of all your daily expenditures including food, drinks, clothes, transportation, and so on, to see the total number.
- Find ways to cut your unnecessary spending
Once you know your record, try to diminish those unimportant or try to less spend on it. It may be time to cut back if your expenses are so high that you are unable to save as much as you really want. Determine which non-essentials, such as entertainment, luxury clothes, dining out, and much more that you can cut it off. Look for ways to cut costs on your monthly fixed expenses. Nevertheless, cutting costs may not be easy because some items may be used for satisfaction and respond your desire. You can also cut spending by purchasing only on promotion items rather than without one. You can save money and get additional benefits by participating promotion (โปรโมชั่น) such as free samples, vouchers and coupons, and many more.
- Set budget when shopping
When it comes to shopping, setting a budget is crucial because they don't have any spending constraints, many people overpay on products they don't want, need, use infrequently, unnecessary to them, or even unusable. This is not a good direction to spend money. try to set an approximate or more precise amount for what you're looking for to support how much you can afford, how much you're comfortable spending, and how much it makes sense to spend on this shopping.
- Avoid paying at full price
This approach can be easily done by many options whether it by promotion, sale, pre-order and many more.
Purchasing sale (ลดราคา) items does not imply that you should rush to purchase something that is on sale even if it is not necessary for you at the time or is something you do not want, you should purchase a product that is currently on sale rather than paying a higher or full price for a product of comparable quality. Buying stuff at a discount leaves you with more money to accomplish other things you need to do, or even more money to buy things you need to keep your life going. The A bag, for example, is 50% off whereas the B bag is not, despite the fact that they are both made of the same material. As a result, you should get an A bag because it is more cost-effective and allows you to save more money.
Pre-ordering (รับหิ้ว) is also an example of a promotion offered by pre-order providers. It allows customers to get what they want without having to waste time and additional money on things like food and transportation.
There are numerous reasons for starting or continuing to save money. Having funds in general will assist you in the future, whether you're avoiding difficulty in future day or pursuing your dreams. If you have a clear objective or purpose in mind for the money you're saving, it'll be easier to save by following the mentioned approaches.
