According to one of the Tend Principles of Economics, people face trade-off, what this means is that in order to gain something, you must give up something else. Saving money is not the exception to the rule, but certainly, it is something worth to analyze in order to understand the opportunity cost that normal people face when they save money. By comprehending the opportunity cost of saving money, it will be a lot easier to understand why it is important to save money and how it is related to many areas of our life. Saving money impacts a huge diversity of areas in society, some of these areas that I am going to analyze are: people perspective of life, financial stability in Macroeconomics, and investment on the future.
Recently, a survey from Ally Bank showed that saving money is one of the habits that can increase happiness on people. The survey illustrated that 38% of those with saving account tend to feel extremely optimistic about live in comparison with a 29% of those who do not have a saving account. We all have heard someone say that money cannot by happiness then, why we see this drift? I think the reason we see this trend is not because money can buy happiness, but because money can give us stability, and we in our human nature tend to feel good when conditions are stable. So, I would say that one of the reason for which saving money is important is because it help us to feel stable, supported, and relaxed. People who feel relaxed are those that more commonly take the best decisions. Saving money is not only related to individual people, but it also has a lot to do with the economy of a country. …show more content…
For example, United States is a country which debt is growing, Why is this relevant? Well, when United States borrows money, what it does is to sell bonds to foreign nations, which expect their money back in some fixed amount of time. What happens if the debt keeps growing is that many of these nations start to worry if they will actually recuperate their money and in some way the financial stability is lost. For a country increase its financial credibility, it should expend less than it produces, so it can pays its debt and keep growing. Saving money is also a factor in keeping inflation to a low rate. Inflation, in many cases happens when a country print money without having good and services that support it. U.S’ Government has a goal to increase inflation only 2% per year. If the government does not save money and it has to start printing it, it is possible that we see a increase in inflation rate over the next years. So, as we can see, saving money is a way that governments around the world can keep financial stability and help themselves to overcome economics crisis. In the last paragraph, I mentioned that U.S’ government wants to keep inflation rate growing to a 2% per year. What makes this relevant is that at such low inflation rate, if you save enough money, it is highly possible that your money will increase its buying power over time. If there is enough money saved, the government, firms, and people in general can start to modernize their electric power source. We all know that oil and natural gas as both not removable energy sources and their available deposits will