There are multiple reasons why one should consider saving money for future. Different people save for different reasons, but in general having savings always benefit you in future. If you have a clear goal and purpose it helps to plan your savings better.
What we mean by savings – part of the income which you keep aside for future needs and don’t end up spending.
You can start planning your savings by following these simple steps –
- First you need to think of an objective of saving money and then plan as per your goals. Always set your objectives as per your priorities and save accordingly.
- You need to think how much portion of your income want to save.
- Make a list of your total expenses and income every month.
- Prepare a budget on how much you want to spend on your expenses every month. Keep a track on your budget and saving accounts.
There are multiple benefits that you can earn by having a good saving corpus. It makes you financially independent and more secured. It helps to reduce your exposure to risk and provides you a better future. It also helps you to manage funds during emergencies and allows to live your life the way you want. Good saving funds also protect you from financial emergencies and reduce your financial stress.
Financial freedom cannot be defined as it varies from person to person. For some people it can be freedom to stop working & relax and for few people it can be freedom to travel and explore the world.
Few of the key benefits having savings fund in your life –
- It can help you to achieve all your personal goals like short term, medium term and long-term goals. For Example – Short term goals can be buying a phone, Medium term goals can be buying a car and similarly buying a house can be a long-term goal.
- It will help you to address financial emergencies like losing a job, medical emergencies, maintenance of a bigger asset like car, house etc. You can use the emergency funds in all these situations. Ideal emergency funds should be able to address your requirements for at least next 6 months.
- Our life is always full of events and celebrations like birthday, anniversary, wedding even while having a newborn baby. You can enjoy these important events hassle free without stress.
- You can always have the freedom to pursue your dream career or occupation like starting a new business or planning a short vacation.
- Building retirement fund – Keeping small amount of savings to build a corpus for your future so to make your later life more comfortable
- Making your money grow in a compounding way via smart investments is the best way to get the returns on your money in long term.
So finally, what all savings can provide you – financial security and peace of mind. Having a good savings fund can assure you a bright future to you and your family.