Saving money is an ideal that should be taught to everyone. This can make things easier everyday and also give you breathing room. Why is it important to save money? This is a question that many people ask if they were never taught any different about saving money. Saving money not only gives you peace of mind but also allows you to know where money is going.
At the end of each month after my budget I can safely say that I know where every penny of my money has gone. This includes the money that I place in savings for myself and my partner. We want to have money for the day that something could happen to one of our vehicles. What would happen if we did not have this savings money? We would be in a sticky situation because of not having any money to fall back on. Most families these days have just enough to cover bills and very little left over.
Each month, I budget out that I put back at least $25 a month into our savings so that when things come up I am prepared and not put in an any worse situation that we might be in due to the issue. Although savings accounts are not always about bad situations; what about those last minute get away vacations? Those can be taken from a savings account and not have to go broke during the month so you can have some get away time.
Some people might be worried that they cannot afford to save money. Yes you can! Take a moment and think about this logistically. If you save $25 a month then in 12 months you will have saved up 300 a year. What could you do with $300 a year? Well you do not have to do anything with it. Some people continue to save it over years. Many banks also offer interest rates that they pay out for the savings account the longer it stays in the account.
Saving is a smart idea for any person. It is also a way to save up for items that you might want to buy. For us we never pay for anything that we cannot pay outright with cash. We love saving our money for a bad situation or just for a getaway. What will you do with all the money that you can save each month?