There are two pieces of financial advice that can benefit every single person on planet Earth. Interestingly, both the advices are in the form of a saying that you will probably recall hearing as a child. The first one is, ‘make hay while the sun shines’ and the second one states ‘save for the rainy day’. If you did not quite get what those sayings were referring to, then allows us to explain to you in detail.
Make hay while the sun shines is basically a roundabout way of letting you know the importance of making money when you have the opportunity to do so. A lot of people waste their youthful days of exuberance doing nothing that can benefit them financially. Once they cross their 30s and advance towards middle age, they are likely to become less competent as bread earners. In other words, the older you become, the less likely you are to tap into sources of money (unless you have already done that before). There will always be exceptions to this case, but there’s no point in hoping that you are one of them. The second saying, ‘save for the rainy day’, is a forewarning for people who are not eager to save enough of their money. You might be financially well off today, but if you do not have enough savings to fall back on during times of disaster and crisis, then you will eventually slip into enormous debt.
At the end of the day, it is not about how much you make, it is about how much you save. It is always great to be the person with the biggest pay check in the room. However, it is an even better feeling to be the person who knows that they have more savings than everybody else in the same pay scale. If you are still in doubt about the importance of saving money, here are four reasons to get your further convinced:
1) Enduring a Financial Crisis
All it takes to go bankrupt in the United States of America is one major financial crisis. Now you may think that you are smart and responsible enough to avoid financial disasters. However, you can never know what to expect when it comes to money. A natural disaster in your neighbourhood could lead to a financial disaster in your life. A drastic change in the economy in the form of a sudden recession can force your employers to sack you and put you in the unemployment line. An illness or sudden death in your family could put your finances at sixes and sevens. There are no guarantees in life when it comes to money. The only thing that you can be sure of is that one day you are going to have your back against the wall. On that day, you will be in desperate need of savings to get out of the corner that you are stuck in.
Do not make the assumption that short time solutions such as borrowing money will help you endure a financial crisis. Borrowing only delays and prolongs the crisis. If you want to survive a financial crisis, you have to start saving money today.
2) Securing the Well Being of Your Family
People say that money cannot buy happiness. Although there may be some degree of truth to that statement, but it does not change the fact that money can certainly improve the quality of a person’s life and that of his family. With sufficient savings in the bag, you can always think about buying a great house, a car or a trip to that exotic foreign location that you had always wanted to visit. Most importantly, saving money today can help you pay for your children’s college fund a few years down the line. As mentioned before, the older you become, the less opportunities you will have to make money. Hence, it makes sense to save money today so that you can use it to enjoy your life with your family later on.
3) Paving the Path for a Wonderful Retirement
Do not always rely on the government to take care of you once you have retired as a professional. The pension that you will receive from the SSS or the government benefits that you will be entitled to will not be enough in the long run. Unless you want to work after the age of 65, you should start saving enough money for retirement today. If you have money in hand, you can live life on your own terms even after becoming a senile, senior citizen.
4) Helping the Country’s Economy
Saving money can be a patriotic act. When you are setting aside cash for your income, you are making sure that a part of your savings is being utilized for sustainable economic development. Countries that have achieved exemplary standards of living have been able to do so thanks to the availability of money from people’s savings in the banks. If you want America to be financially stable, then you should channel more money into your savings account.