Unless you’re independently rich, you need to think about money from time to time. The way you spend your money can determine many things, including your future. This is why it’s a good idea to start saving as soon as possible. You never know what will happen or when you’ll need extra money. You also want to be ready for the big purchases you may want to make at a later date. In fact, there are three main reasons why saving should be extremely high on your list of priorities.
Big Ticket Items
You may want to invest in a brand new car. You’ll more than likely need a down payment to do this. If you haven’t been saving you won’t have that money readily available to spend when you’re ready to buy. This is why it’s far more important to be ready for an opportunity before you have one.
An Unexpected Crisis
You may leave your house to go to the grocery store and be rear-ended right before you turn the corner. If you don’t have money saved you could be in a pickle for a while. Your car may be totaled or be in the shop. Either way, if you don’t have rental coverage included in your insurance policy, you might be up the creek. The shop may have to send off for the parts to fix your car, leaving you without a car for awhile. Unfortunately, refrigerator freezer parts won’t help.
You may be cozy and comfortable at the job you’ve been working for the past five years, only to be laid off after the fifth year of service. If you don’t have any money saved as back up, things may get far worse before they get better. It’s hard looking for a job when you don’t have any money coming in. If you haven’t saved money for a rainy day, it may rain for a long time and you won’t have an umbrella. Prepare for the shocking and the unexpected. Save your money. In the event that you are laid off or fired, you should have at least three months of salary saved so that you have time to get back on your feet.
The message is clear. Save your money. You have no idea what’s coming down the pike, but you need to be ready anyway. It will help you sleep at night and save you from lots of stress and heartache.