The importance of saving money

The importance of saving money does not stem from the desire to accumulate wealth as some argue! Rather, it is a strategy to reduce life trauma and improve the quality of our lives and the lives of our families, which emerge in times of emergencies and financial crises that occur suddenly and unexpectedly, when we need money to deal with the problem.

Therefore, dear reader, in the following lines in this article, we will discuss the importance of saving money

The benefits of saving can also be seen in the post-retirement period, when savers can put their money to good use in areas and activities that they enjoy, improving their quality of life, happiness, and self-esteem.

The main purpose of saving is to save money that you need in difficult times or circumstances; It’s a strong insurance system, and we also need to save some money so that we can offer ourselves and our families a dignified, more prosperous and quality life.

Also, if you have saved enough money to purchase a personal home, you will not need to borrow, or at least not need the full cost of owning the property.

Children grow up rapidly, and they always want us to aid and set the path for them in life, including financial assistance to complete their higher education, which is a wonderful thing to cherish and something that children will remind us of.

The importance of saving money and its real benefits

 The importance of saving money
The importance of saving money

The importance of saving money stems from the fact that in the future you may want to start your own business, but you may not have enough funds in your account to complete the project unless you have financial vision, strong financial planning and constantly save.

Savings are usually earned

You may truly save 10% of your total monthly income as long as you have an income that supports your daily and monthly spending. What you must do is first recognize the importance of saving and its absolute necessity in your life, and then decide to save consistently from your total monthly income, saving at the end of the month.

It is a habit that may be developed by first believing in it, then practicing and adhering to it. Your deep confidence in the concept, its significance, and its benefits will make it easier for you to control your financial conduct and instill the habit of saving in your system.

If you are a beginner in the task of saving, encounter psychological resistance, and feel that you require some outside support, there are several options you can consider.

Those options – some of which may sound funny – can encourage you to continue and be consistent in your quest for the habit of saving, even when your enthusiasm wanes, your feelings about saving subside, and you begin to feel that you are not ready to continue! Among the possibilities are:

1. Opening a suitable (savings) bank account, since banks sometimes provide a variety of savings accounts, some of which are (closed) and cannot be withdrawn from for a fixed period of time, usually a few years, and others of which are more flexible.

2. Put your savings money away each month in an in-house safe, and you can keep the key out of your reach by entrusting a family.

3. You might also inform your spouse or family member that you are attempting to develop a saving habit and that you must maintain it! You will provide him the money monthly for a year, and the money will be transferred into your savings account at the end of the year, and you can give this person the ability to interrogate you if you do not deliver the savings installment on time; this is often preferable than not saving at all!

The realization of future ambitions in marriage, homeownership, a happy life, financial independence, wealth building, freedom of decision and action, and fulfillment of wants and aspirations are all important reasons to save.

Another advantage you will enjoy as you work to develop a saving habit. The fact that this habit will put you on the right track and be a true start for you to join a new environment of responsible and ambitious financial planning, paving the path for you to achieve the financial success you seek.

Saving is the gateway to investment and wealth

A/ Save from your earnings and avoid miserliness and stinginess at all costs, especially with family and friends. 

B/ For those with high salaries, strive to save 15% to 20% of your income in order to meet the rule of double ownership every 5 years, which is one of the most important principles of financial intelligence and investment, where your property doubles once every 5 years, which is an important investment goal.

 The importance of saving money
The importance of saving money

golden rules in investing

We put points on the letters regarding worldwide and professional standards for diversifying the investment portfolio, and we emphasize an essential guideline in investment distribution, which is the 40/30/30 rule.

Real estate accounts for 40% of the total (whether existing real estate or real estate funds and portfolios)

Direct investments of 30% (shops, exhibitions, institutes, factories, productive farms, contracting)

Stocks and bonds account for 30% of the total (this percentage is in mature and stable markets and decreases to 10 percent in emerging or unstable markets, and the difference is transferred here to the world of real estate and direct investment).

Saving for emergencies

One of the most important things to do is set aside money to cover any unforeseen financial emergencies, such as medical bills, job loss or sudden income, monthly income but not fixed, unexpected property damages, or unexpected car breakdowns.

To account for them, it is necessary to set aside some cash for these emergency situations without going into debt or adding to financial responsibilities, by establishing a fund for monthly payments that are saved up to an amount that fulfills the necessities for around 3-6 months.

Increase one’s options

Increasing the possibilities available to an individual. Saving ensures that his owner can live freely and decide his fate without being compelled to make a choice he doesn’t want to make.

He will also have more possibilities for moving to a better location, such as renting a new, better apartment or making a down payment on a finer and more expensive home than the one he currently resides in. If the individual need expensive health treatment that his insurance does not cover, he will be able to pay for it.

Saving gives a person freedom

Some people debate whether it is more important to spend money on what they want or whether it is more important to keep the money. Especially if they do not have a specific goal in mind to save this money, but with money in the bank, an individual can do whatever he wants freely and without pressure; Saving will allow him to choose the option that comforts him most, and he will be more likely to find what is worth saving in the future, such as buying a new car, a new home, educating his children, and countless other things. [1]

 The importance of saving money
The importance of saving money

The following are some of the societal advantages of saving:

1- When money is saved and invested, it provides excellent services to the nation and its economy.

2- Increasing savings proceeds opens up new economic possibilities and fields of public interest, such as national projects like land reclamation, city construction, and desert restoration.

3- Creating a large number of employment openings in order to manage the new product initiatives.

4- The operation of the saved funds leads to an increase in investments, resulting in a surplus in national income, and thus to the state’s gradual sufficiency, preventing it from requesting aid or borrowing from any foreign country.

Read more:

Saving Principles + 15 Realistic Savings Methods

Top 54 successful projects for women 1000% in 2022

How do I get money now | Ways to get money 2022

Support in case of job loss

There is no job security now; we are all temporary, and we will lose our jobs one day, these are the facts of the current era and the conditions of living in it, and many of us have tried the idea of dismissal from work, which puts the family in a real crisis, and it is difficult to find someone to lend you money while you are unemployed and without income, though you will resort to borrowing as a last resort and will do so unwillingly.

Having a cash reserve will allow you to cover your living expenses and meet your financial commitments, allowing you to search a new employment with real peace of mind.

 The importance of saving money
The importance of saving money

Conclusion

The importance of saving money is a strong insurance system that will prepare the individual to face the uncertain future with all its developments and emergencies. It also ensures that the individual and his family live a dignified and wealthy life by allocating a part of the savings for convenience or to improve the living situation of the family by buying a new home or car, among other things.

This is in addition to the financial freedom that saving provides; The individual will not be compelled to accept a decision he does not agree with, and the effect of saving on the economy of the country cannot be overlooked. When money is saved and invested, the national economy benefits greatly.

Related Posts

Ways to Plan a Family Budget

10 Ways to Plan a Family Budget: A Step-by-Step Guide

Budgeting doesn’t have to be complicated! Even if you don’t have much experience with it, you can still manage your money and plan for a happy future….

Increase Productivity at Work

How To Increase Productivity at Work: 6 Tips That Will Make You More Effective

Today’s workforce is more productive than ever before. With the advent of smartphones, the world has become what can be termed a 24/7 office. Working from home,…

Voice Marketing

The Rise of Voice Marketing: How Brands are Connecting with Customers

Voice marketing, or using your natural voice to promote a product or service, has grown significantly in popularity over the past year. With new hardware such as…

creative marketing ideas

creative marketing ideas… Definition and Importance

The more new and creative techniques there were, the more I was able to attract clients and persuade them to do business sustainably with you. If today’s…

Screenshot 19

Marketing a company’s achievements… Grooming and the self-image industry

Marketing a company’s achievements is one of the clever methods used by seasoned marketers; to work on creating a positive self-image about the company and strengthening its…

home appliances sales

home appliances sales…Facts and Statistics

The project of selling home appliances is one of the high-profit projects, which has a very high demand rate, and you are in front of a huge…

Leave a Reply

Your email address will not be published. Required fields are marked *