We often hear so many things about the importance of saving money, and yet there is never an explanation as to why. So many people – especially in the modern world we now live in – want to live in the moment, and in doing so, means being a little impulsive at times and buying what they want, when they want, because they can. This is a freeing way to live because it banishes responsibility and stress and pressure, as there are no longer any rules to abide by. While this may sound rather nice, there is a reason that people make rules regarding their finances.
It’s easy to be blasé about it when you have a nice figure looking at you in your account, but when you don’t have that luxury and instead end up having to worry about scraping by until next month – everything changes. So remember that even if you’re living it up right now and constantly have money pumping into your account – things change, and you may find yourself in completely different circumstances within the blink of an eye, all because you weren’t careful.
Here are a couple of other reasons why you need to think about saving up, and how.
You never know what kind of situation you may end up in. You might be a fit and healthy young adult, and wake up one day and get involved in a car accident, or get diagnosed with an illness you never imagined you’d have. And while this is awful, you need to think about how you’re going to get the treatment you need without ending up in major debt that you’re having to pay off for the rest of your life. But this is where the Health Savings Account Guide comes into play. You are able to safely put your money away in the event of an unexpected emergency, but not only can the money be used to cover health care expenses, but it can be used in retirement too on a completely tax-free basis.
While you may not have any big career dreams right now, that could always change in the next few months or years, and you want to be able to have the opportunity to pursue whatever you like, without there being any money issues that are holding you back from following a certain path. So by saving up the money you have coming in now, you won’t have to worry about the risk of not being able to pay your way through schooling or college, because you have your future education funds that have been accumulating over time, giving you the freedom to learn whatever you want to learn, and build a career from the ground up.
Now that you have a couple of examples, you can understand why it’s important to be wise with your money and think about the potential of your future. Regardless of whether you have a plan right now or not – things change all the time, and something may arise where you’re so glad you had some savings to tap into.