People realize having money in savings is important. However, they believe they can put off opening a saving account or building it up until a later time. This is especially true when a person is young. They tend to spend money as fast as they get it. As they get older, however, and take on more responsibilities, they cannot continue in this manner. Doing so could lead to severe financial consequences.
Why Saving Money Is Important
One emergency can set a person back for an extended period of time. When the funds to pay for the emergency must be obtained using a credit card or unsecured loan, the interest rate tends to be very high. By the time the bill is paid in full, the person has spent a great deal more than the original bill to fix the problem. If the person simply puts off a repair or delays visiting a doctor, for example, the problem could become much worse and lead to even higher bills. Money in savings helps to avoid these situations.
Why People Don’t Save
Some people simply don’t know how to save or don’t fully grasp the importance of doing so. They were never taught this basic information. For others, it is a matter of living paycheck to paycheck. They barely get by and can’t imagine having any extra to put toward this goal. Certain people simply don’t want to save. They want to spend their money as they wish without worrying about the future. Regardless of why a person has yet to take this step, now is the time to do so.
Begin saving money today. Even if it is only a few dollars a week, something is better than nothing. Commit to setting aside the same amount with each paycheck and work up to saving ten percent of your income. Make this the first bill that is paid each paycheck so it doesn’t get skipped, and budget it like other expenses. By doing so, it becomes easier to build up this emergency fund and prepare for the future. This may require one or more sacrifices on your part, such as giving up your morning cup of coffee, but you’ll be glad you took this step when an emergency arises and you can handle it with ease. Visit http://brokegirlrich.com/you-dont-want-to-face-these-emergencies-without-savings-in-the-bank/ to learn more about why this is important and how to build up savings.