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Why would you save money?

Good morning everybody. Thank you for giving me the opportunity to share this valuable information with you. You often read in books and hear people say that it is necessary to save money. Today I want to talk about saving money.

Saving money is a good habit that should be encouraged from a tender age (Fisher & Sophia, 65). When you learn how to save money while you are young, you are guaranteed a stable and a better future.  Everybody is susceptible to an emergency. However, the success by which you can overcome emergencies depends on how much money you have at your disposal. Therefore, the savings can help one to overcome the emergencies that may interfere with normal operations of your daily lives (Deaton & Christina 99). Unexpected emergencies can come in many ways, such as hospitalization, job loss, accidents, or any other crisis. On the same note, our friends can encounter some emergencies in their lives. We can quickly help our friends overcome their emergencies only if we have enough savings at our disposal.

The children need to be taught how to save money from their tender age to enable them to develop the culture of savings and investment (Ruefenacht et al 37). Savings helps the parents to teach their children how to be independent. You can only be independent when you have reasonable savings. Saving helps the children to buy most of the stuff they may need in their life. For the students, the savings can help them to acquire items such as books, computers, and even food. Therefore, the savings help the children to live a stable life in their academic life.

Samwich believes that you can only invest if you have some reasonable savings (26). On the same note, the savings can help you to acquire loans that can boost various investment decisions. Most credit institutions will not want to give credit to a person without any savings or capital. Therefore, savings can help secure additional sources of funding needed to start a business. On the same note, the savings help the businessman to deal with the emergencies that may come from the firm.

On the other hand, savings help the people to have the financial discipline that helps them to have a stable future. Many people without financial discipline find it challenging to lead a stable life. Such people can plan their lives properly and make a good future for their children. Individuals who lack financial discipline often lives unstable lives with lots of insecurities and instability (Pierre-Olivier 409).

At one point in life, you have to retire. During retirement, there is hardly any income that continuously flows any month. However, the retirement life is never easy without reasonable savings. It requires one to have an annual savings so that you can have a perfect and stable life during retirement. People who don’t save for the future often face retirement with much stress and can often experience stress and instability in their lives.

To conclude, saving the money is in critical virtue of life that should be instilled in children at a tender age. Saving helps people to counter the possible emergencies that they may encounter in the course of their lives. Also, the savings help the people to develop the culture of doing business and investment. Finally, only saving helps guarantee people a stable life during and after the retirement period.

 

Work Cited

Deaton, Angus S., and Christina H. Paxson. “The Effects of Economic and Population Growth on National Saving and Inequality.” Demography (pre-2011) 34.1 (1997): 97-114. ProQuest. Web. 10 Dec. 2016.

Fisher, Patti J., and Sophia T. . “Relationship of Saving Motives to Saving Habits.” Journal of Financial Counseling and Planning 23.1 (2012): 63-79+. ProQuest. Web. 10 Dec. 2016.

Pierre-Olivier Gourinchas, and Jonathan A. Parker. “The Empirical Importance of Precautionary Saving.” The American Economic Review 91.2 (2001): 406-12. ProQuest. Web. 10 Dec. 2016.

Ruefenacht, Matthias, et al. “Drivers of Long-Term Savings Behavior from the Consumers’ Perspective.” The International Journal of Bank Marketing 33.7 (2015): 922-43. ProQuest. Web. 10 Dec. 2016.

Samwick, Andrew A. “Saving for Retirement: Understanding the Importance of Heterogeneity.” Business Economics 41.1 (2006): 21-7. ProQuest. Web. 10 Dec. 2016.

 

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