The importance of saving money has been encouraged by a number of nations across the globe. In developing countries like Malaysia, Thailand and India the central and local governments have introduced a number of schemes and policies such as the Jan Dhan Yojana in India. In order to create financially inclusive programs and financial services such as bank accounts, pensions and remittances, governments offer incentives to its citizens such as interests of savings accounts. These incentives are more like investments and benefit citizens with more money to spend in the long run in order to cover larger expenditures.
Importance of Saving Money For Students
When it comes to students, we all know they’re one of the busiest most hard working demographics in the world. A typical student pursuing his higher education would invariably be committed in completing their full time education, while seeking a source of income. In most cases, while being enrolled in a college, students work as part time helpers or take up other responsibilities that help them cover their daily living expenses. Of course, the importance of scholarships cannot be underestimated while seeking an opportunity to study in a well reputed university. However, a scholarship or an award cannot be won by every student who applies.
But at the end of the day, while students hustle every single day to make ends meet, their hard work is rendered unproductive if they are unable to save a portion of their income. The importance of saving money, especially for students cannot be overstated.
Here are some reasons why saving money is important:
To Help You Take Up Your Dream Career
While finding a job as a student, you will more often than not end up in entry level roles. Say a part time receptionist or a retail executive. These roles help students to cover their basic living expenses and help them keep their head above water. Not to forget the heavy debts at least a majority of students are liable to pay as a part of their education loans.
Imagine being in the same position even after some years. While I am asking you to imagine this scenario, but, we all know someone who is stuck in their job because they don’t have enough financial freedom to change their career or do what they enjoy. The importance of saving money is not just for the purpose of enjoying, but investing money in the things that give you a monetary return. This can be in the form of starting your own business, investing in government schemes or locking an amount for a long term security with high returns.
Saving Money For Stress Reduction
Let me break it to you, the rewards of saving money are not harnessed in a fortnight. Money saving is a long term process and the importance of saving money can only be seen when it becomes a practice. If you want to be stress free and confident about purchasing a house by the end of the year, you should have already saved a good amount of money over the past years that you have been earning. It takes months to build a habit and a lifestyle that includes money saving as an integral part of money management. Finally, you can only have substantial savings that can be used to buy that house or make a career transition if you have been focusing on either saving the money or investing it.
To Meet Unforeseen Events
How unfortunate would it be if you are staying in a rented student housing and your laptop or computer needs immediate repair. Would wait till you receive your monthly salary or take a look at your savings account to see you can afford it? I bet you want to do the latter and it is only possible when you have been saving a chunk of your income for a while. The importance of saving money can never be underestimated. While focusing on the negatives, you can also make a bucket list to travel to Germany, Italy, France and other countries with the same money.
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Save Money For Your Big Ticket Purchases
Big ticket purchases are once in a lifetime purchases or expenditures. They usually involve a huge amount of money and you can’t pull off a big ticket purchase unless you understand the importance of saving money.
Purchasing a house, maybe a car, planning for a family or investing for a business, all these events involve large amounts of expenditure. In order to safeguard yourself against these payments, the money that you have saved ever since your first job, all play a role in helping you reduce the burden of expenses.
Imagine being at the juncture of life where you have to change your career path or change the area of residence or have a car you really want to buy. You are old enough to do these transactions however, you don’t have enough money to. Not because your income is inadequate, but because you have failed to save a part of your money every month.
Understanding Importance Of Saving Money: How Much Should I Save?
They say at least 20% of your income should go in your savings account. But when you save 20% of your monthly income for a year, it is enough for you to travel to a country abroad. Saving 20% of your income for about a decade could help you cover your maintenance expenses such as servicing your car, changing your home décor or purchasing a dishwasher. However, 20% of your salary every month is enough to help you cover a foreseen or an unforeseen event. You might want to experiment and explore with the amount of money you save from your salary however, it should not be less than 20%.
Thanks for reading this blog on Catch Up On The Importance Of Saving Money For 2021, if you are interested in knowing about scholarships available all around the world, the following may be of help: