How to save money and Why saving is important?

To know how to save money, we first need to know what is saving. Saving is an amount which we set aside for our emergency days or as it is termed as emergency funds.

We all have been saving since childhood, don’t you believe? In childhood how when someone gave us chocolates let’s say 4 then we used to save one or two for later, yeah it is called saving only.

Is saving really possible?

Many people in many parts of the world are daily wage earners or they earn just the bare minimum to survive the monthly expenses. Saving in these cases are also possible, no matter if we are daily wage earners or earn bare minimum for monthly expenses.

Saving is not only when we cut our expenses or keep aside a small amount for an emergency fund. When we cut unnecessary expenses or when we buy things frugally is also termed as saving. Expanding but within the limit is also a kind of saving.

How to save money

Saving is not when you cut your expenses and buy cheap products, saving is when you rationalize your needs. Saving is when you don’t buy things just to show off or just to fit in.

Saving can literally save your life, in many circumstances when we need money and there’s no source of money we can possibly see or have. Our friends turns their back to us when it comes to money so does our relatives, that’s why it is important to save few are natural and basic ways/ideas to save-

Set aside a part of income

• Always try to keep aside a part of income. For instance, suppose you earn 10K a month then keep aside 500 every month and forget about it until you really need it.
• Now the question arises if you earn a little then how can you set aside a part of income.
• Then what you can do is to cut your expenses wherever you feel so.
• It does not mean to live cheaply, it means living frugally and expanding rationally.

Earn more, save more

• Yes, it is true but it does not approve of the idea of not saving when you don’t earn more. What is more? We can never justify more, some earn millions still are unhappy, some earn bare minimum and are happy. The numbers do not justify the need to save, you always can save.
• Saving offers numerous benefits, as we consume, we also save.
• Saving is also when our mother’s keep a piggy bank in each one of our names and keep putting it money for our needs or for the future.
• Egos don’t let people save more often, why save when I earn well? This is where ego resides, we know we are earning well now but who knows how time will turn out in the near future.

Saving is a tool

• Tool, it’s confusing it is a tool but it was an emergency fund.
• Many people who are earning well or in a well set position also preach the benefit of saving.
• Investing is important, but a common mistake we make is we invest all the amount which we saved in investing somewhere in order to earn more.
• This practice is not appropriate as investment is necessary but it sometimes doesn’t give us the required return or we may suffer loss.
• For instance when people in trend invested in Crypto assets all their money without knowledge and suffered huge loss.
• Investing is not wrong but to invest somewhere we need to understand first.

Last resort in emergency

• From the past two years, we have seen an epidemic where we were stuck in our homes, few stuck in unemployment. It was all new for all of us. Many people lost their life just because they were not able to meet the bare minimum requirements of day to day expenses.
• Here comes the picture of saving, saving was the only one who saved millions of households.
• Those who lost their job due to the pandemic , their basic requirements were met only because they had saved in the past.
• We can never predict what is in our future. That’s why we should always save no matter if we earn more or less, we never know what time has for us in it’s bucket.

Importance of saving

Saving has numerous benefits and so many preachers but the most important factor is what if we are students, what if we are housewives, what if we are jobless, what if we only earn bare minimum.

In all the what ifs the most important part is, we all can save no matter what we do we can all help contribute our family or our future by saving. Few factors which highlights the importance of saving is-

Saving is not confined to earning person’s-

• Each one of us can save a healthy amount. Yes, even if you’re unemployed or a student or a housewife.
• If you are a student, prepare a budget for your daily expenses, if you take a taxi or cab to college, switch to a bus and get a pass for bus travel and see how magical the amount you save.
• If you always munch your lunch from your canteen try taking lunch from home, it will be healthy plus pocket friendly.
• If you are unemployed try going to pool cabs, it will save a lot.
• If you’re a housewife, all housewives know how to save, no matter how little amount they have they always save, how? Just by making budgets and knowing the importance of saving.

Save with a goal

• Always have a motive when you save, have a why in mind to save.
• If you are saving aimlessly then you may not be able to save for the long term.
• Always associate a goal to save, for instance you want to buy a laptop and keep a small amount to accumulate.
• Goal oriented saving works when you create small goals or sub goals and save according to those goals, it will give you immense satisfaction after the goal completion.

Saving is wondrous-

• Saving it just like a bucket of water which we have saved for in the middle of a desert. It allows you to build a dream and complete it too.
• Our forefathers have saved money and bought/built us a house which many of us are living in.
• It allows our dreams which seem impossible to be completed.
• If we start saving at an early age we can enjoy our old days with more leisure.

Earn, Save and live happily ever after

Saving should not be confused with inferior living/cheap living, saving means enjoying all possible benefits you can along with a tiny amount you can save for the future.

It does not always mean you have to save, but always remember a tagline when you save, ‘save according to your convenience, make life convenient’.

Pros & Cons of Saving Money

Pros:

• Saving helps you in difficult times to survive.
• Saving is a safety cushion which helps you in need.
• Goal oriented saving helps us achieve dreams in no time.

Cons:

• You may get confused on how much to save.
• In order to over save you may not be able to enjoy it.
• There is no such con of saving, cons are only for those people who do not understand savings.

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