The Reasons For Saving Money Essay
Some of the reasons why saving money is important are as follows:
Emergency Funds: In order to tackle emergencies in a proper manner, you need to have a substantial amount of money that you have saved over a period of time. These emergencies could include any number of things like building a new roof, unexpected medical expenses, sudden layoff leading to loss of steady income, etc.
Improvement in life expectancy: As medicines and public health facilities improve, the average life expectancy of an individual is all set to rise. This means that you would require more money in order to maintain the same quality and standard of life over the years.
Volatility of social security: Even if the government in your country provides social security, it cannot be considered as the main source of income. Social security, at best, can be a small part of your additional income and in no way should you depend on it entirely for your daily expenses. If at any time, social security plans are withdrawn, you will be left with no source of income and that can become a major hurdle in your financial independence.
Education and other expenses: The cost of both private and public education is increasing every single year. Not just…