With credit being so easy to get, it can be easy to think that you don’t need to save money when you can just buy them with cash. If you want to buy something, you can just pull out your plastic credit card and then pay it back afterwards, right? Plus, if you can afford to make the repayments, then what is going to be the big deal? But when you start to think like that, is that it can make sense for a lot of people, when really, it can end up costing you more in the long term, and doesn’t leave you free or in control of your finances. So here are some of the things that you can do to make sure that you can save, as well as the reasons why you should be saving money.
Financial Independence
There is one thing about the notion of being rich or wealthy, and to a lot of people, that notion is all about having some financial independence, such as being free from debt or even mortgage, as well as having some savings to rely on. In order to get to this level, then you might want feel like you need to switch career or start a business of your own, but when you have been saving and living quite a frugal life, then it can help you to save and get on the way to financial freedom. It is important to note that financial independence isn’t the same as being ‘rich,’ but it is all about not having to depend on a pay cheque each month, as you have money to fall back on. Having savings that you are able to rely on is what can help you to feel ‘rich,’ even if you’re not living a five-star life.
Buying What You Need
When you want to buy something that you need, like a car, then you will need to have some money ready for things like a deposit, or you might even think about getting a car on finance. Of course, you could look to borrow the money for these things with a credit card, but when you think about interest rates, it is likely to not be worth it as you’ll end up paying so much more. So the best thing to be doing is to save and put money aside for as much of a deposit as you’re able. You should also consider the cost of getting car insurances too. It could even be something like buying a used car rather than one that is brand new is what will be better for you and what you can afford. At least you will be getting what you can afford.
Financial Emergencies
As much as we plan for emergencies, we really do hope that they won’t happen. But there are circumstances that they do. There could be health problems meaning you’re off work, need to make a trip as an emergency because of sick family members, or even home repairs due to flooding, for instance. These things can and do happen. These things can be expensive, so it is important to make sure that we have money ready for these kinds of thing, so that the stress of them all is reduced as much as possible.
