Thus far, Your Money & You has explored some of the keys to success when it comes to spending, budgeting, and managing your debt. Now it’s time to take a look at your savings!Have you totally ignored the idea of saving money period? Not quite sure why you should save? Whatever the case may be, know that saving is critical to your financial well-being. So let’s start by looking at some reasons to save just in case you’re not quite sure why you should or just need a little something to get you motivated.
Expect the Unexpected: According to life, the unexpected can and will happen so it’s important to have an emergency fund set aside to cover the expenses. Whether its unexpected car repairs or a sudden job loss, saving for emergencies will help you maintain financial stability should an unexpected expense occur.
A Down Payment: Be it for a house or a car, your negotiating power will be a lot stronger if you have a significant down payment towards your purchase. You’re also more likely to receive better interest rates and more affordable payments.
Education: Maybe you’re thinking about going back to school for that masters or doctorate degree and don’t want to fool with the horror of more schools loans. If you have kids…consider “saving” them the hassle.
Retirement: The sooner you start saving for retirement the better off you’ll be when that time comes. Remember, Social Security (SS) was never truly designed to be a sole source of income in retirement and if you’ve been listening then you also know that the SS program has quite a few funding issues that may or may not be resolved by the time you’re ready to retire.
