Financial savings: warrior during tough times
Consider Starting a Savings Policy
12:11 30 June 2014
Saving is putting money aside without a risk. Furthermore, the saving comes with a chance of growing by earning some interest over a specified period of time.
Why saving is Important:
There are very many reasons as to why saving is advantageous. And it is always advisable for anyone to saving regularly. Before you set up or sign up for any savings program, it is very appropriate to work out and calculate how much you can afford to save and more importantly have a savings goal so that you work towards achieving it in the long run.
- The first advantage of saving is that you get to earn more money after a period of saving. There are certain percentages of interests provided to savers during that period their money is in the savings account.
- Far more advantageous is that when the interest is deposited into the account, it will also grow as part of the original savings amount thus gaining interests too. Well, savings are a great help in times of emergencies.
- Since you never know when disaster will hit, it is always good to have some money set aside that will definitely back you up instead of taking a loan when encountered by a problem.
- Similarly, when your money is in a savings account it is secure and free from unforeseen dangers like burglary or accidents. If you put your money in the house, it could be stolen any minute or prone to accidents like fire or natural disasters that will see you lose it without warning.
- Furthermore, one tends to minimize spending when the money is in a savings account as compared to when he or she knows the money is in the pocket or somewhere they can easily reach out for it.
When one saves, he or she can be in a position to accumulate wealth over a period of time. Most people’s goals are to own big houses, big cars and more specifically to get rich. Saving is the only way to get there.