Factual reasons to save money is to gain financial security and to achieve financial freedom. It acts as a safety net in case of financial emergency.
Factual Reasons to Save Money:
Actually, various investment companies, nowadays, are providing us with loans to meet almost all the major necessities of our life. Because credit is so very easy to get, therefore someone may think about the necessity of savings. Therefore, they find no reasons to save money. In reality, there is a lot of importance of saving money.
Below, are the reasons to save money: —
1) FINANCIAL INDEPENDENCE(Factual Reasons to Save Money):
Most importantly, our savings will make us rich in one day. Besides, more financial freedom will come as a result of grow our savings. Consequently, our money or savings grow rapidly. The speed is beyond our imagination.
As this is our own money so we can spend them at our terms instead of abiding by the terms and condition of the borrower.
Financial independence means that we may take a leave at any time from the job or we may leave the job and think for a suitable switch over or may retire after attaining a certain age rather than bound to continue the job though my physic is not permitting etc.
In a word, reasons to save money means that I need not depend on anything else in terms of money to maintain my livelihood as well as my family.
2) SAVE ON EVERY PURCHASE(Factual Reasons to Save Money):
If we buy through credit cards, we do not get any discount on the product price(MRP) and sometimes we have to give extra charges for the card. Added to this is the mental pressure and calculation that I have to repay by this date, otherwise, I will have to pay interest for that.
Usually, we purchase a lot of unnecessary items with the hope that we will be able to pay on time. But practically it does not happen. As a result, we have to pay a lot of extra amounts.
But if we buy in cash we will not only get a discount on MRP but also we can buy when the company give offers which make the items cheaper. Reasons to save money is this.
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3) HOME LOAN:
It is true that we all want to have our own house. This is among the reasons to save money.
If we do not have enough money, then we need a house building loan from a bank or other financial institutes. In turn, we have to pay around 10% interest over the total loan amount, throughout the tenure. It is a big amount which we will have to pay in excess of the original cost. Moreover, there are other expenses including registration fees. Altogether it is a few lacks. Therefore, we have to save.
We generally think that if we have a car it will be very good. If we have enough money, we can go and purchase a car.
If we want a car loan we also need a down payment and it is also a substantial amount. Moreover, we will require a lump sum amount as maintenance cost. Therefore, we find reasons to save money.
5)EDUCATION FEE(Factual Reasons to Save Money):
At present education, especially specialized education demands in lakhs. Though someone may get the educational loan, they are very few in number. Therefore, we require money.
6)PROBLEMS TO FIND RIGHT CHOICE:
Although we may get various loans, still there are some problems.
Firstly, the loan amount depends on our salary or income. Secondly, tenure depends on our age. Thirdly how much loan is still due in the market. Moreover, our credit score also matters a lot. Therefore, we may need a more down payment and eventually more savings.
Furthermore, we have to visit almost all houses to determine favourable terms and conditions. Since these are big deals, a .25% change matters a lot.
It may also happen that our sanction of the loan may be delayed for some reasons.
In fact, to avoid all these problems, we need to save. These are the reasons to save money.
7)EMERGENCY FUND(Factual Reasons to Save Money):
Most importantly, we all have the experience that we need some emergency fund for many reasons. It may be for the loss of service or unexpected physical problems. Moreover, it may be pickpocket or attacks of decoit. Further, it may be some electrical damages due to lightning or thundering or many more reasons.
Usually, we do not remain prepare for this type of uncertainties. Sometimes they may happen more than one at a time. As a result, they create reasons to save money.
As a matter of fact, we require cash instantly in these cases as they will not give us time.
Therefore, we need savings.
8)ANNUAL EXPENSES(Factual Reasons to Save Money):
In fact, we have to save to pay only once in a year and we will not get a loan for that. It includes insurance payment or income tax payment or property tax or celebration of birthday and anniversary within the family or to purchase gift items.
We may also need money for some medical check-up and daily medicine.
These items altogether require a good amount. To tell the truth, these are reasons to save money. In fact, we have to save to meet all these necessities.
If we want to lead a peaceful, smooth and hazard-free as well as a stress-free life, then we have to save.
So long our car loan or home loan is not fully repaid, it is very hard to get another loan. But our car may fall into the accident and need a good amount to repair. Moreover, our house may be damaged due to some natural calamity or any other reason and so we have to repair.
Furthermore, sometimes we may require some addition or alteration.
We need a good amount and it will come from our savings. In all honesty, these create reasons to save money.
10)ENJOY STRESS-FREE LIFE:
To tell the truth, heavy dependency on loan is a massive mental pressure and it is very difficult to sustain that uphill pressure throughout life. Moreover, it will lead us in hand to mouth situation. We do not like this position at all. As a matter of fact, these strenuous situations sometimes hamper our sound and sufficient sleep.
Normally our life has various strains. If we have sufficient savings, then we may be financially much more relaxed. We may find reasons to save money.
11)LOAN IS OVERPAYMENT:
Most importantly, the loan is an overpayment. We are paying much more than the actual price. It means we are paying much more and getting very less.
In the case of the credit card, we have to pay 20-50% extra.
In loans, we have to pay two-three times more, at least.
Therefore, it is foolish behaviour. We cannot continue this for a long time. In fact, savings is the only solution. We find this as reasons to save money.
Because our income will go down and companies will not show interest to provide us with a loan. Therefore, we will need a very big amount to live a retired life smoothly. Hence we have to save.
13)TRAVELLING(Factual Reasons to Save Money):
In all honesty, we may spend a few days with our family in some tourist places. It relieves us from the pressure and boredom of monotonous life. We can enjoy a lot with our love and relations. If we can go with our family, it helps to improve our role of parents. Therefore, we go out for a tour. As a result, we will enjoy a few days with family and feel relax. Besides, it empowers ourselves to fight in our daily life after returning.
For many reasons it is good. Sometimes it is our life goal to visit some selected spots. These spots include
Nawabi splendor at Murshidabad.
In fact, these are highly expensive. So we need a good amount of money. Moreover, we will not get a loan for these tour purposes. Only our savings can fulfil our life goals. These may well be the reasons for savings.
14) REIMBURSEMENT OF PAYMENT:
In India, though we have insurance, still we have to pay first in some cases. Afterwards, we will get reimbursement.
15)PEACE OF MIND:
At first, we will set up our financial goals. Then we will save in various funds. It will relief us a great extent from financial stress. As we are stress-free, we will enjoy peace of mind. Due to this, we can find reasons to save money.
16) FOOD(Factual Reasons to Save Money):
It is a very important aspect of our life. We require healthy food. Not only this, but we also require foods with sufficient amount of antioxidants. Added to this we need foods that contain sufficient protein. Particularly, we require them for our children. Moreover, eating various fruits on a daily basis is also necessary for our good health. Fruits include
Mangoes in session.
Furthermore, to maintain good health, we need to use quality oil which is costly. If we use olive oil it is very good for our health. In fact, it offers us a lot of health benefits. Above all, it is very good for our hair and skin.
Apart from this, we can taste some delicious and tasty foods. Usually, Bengali food items are very tasty. Moreover, we can go out with our family and take our lunch or dinner in top-class restaurants. These, all together, require a good amount of money. Indeed, we need to keep sufficient money in our savings account to meet these food luxuries.
17)SKINCARE(Factual Reasons to Save Money):
In the first place, we all want to look young. Moreover, it is our desire to look good. As a matter of fact, we need to use sunscreen. We also require moisturizer. Natural moisturizer like rose water is excellent for our tender skin. Not to mention, that we all want flawless skin. Moreover, we need a various cleanser, toner, moisturizer and perfumes. Added to this, we need proper knowledge of the right order to use various creams.
These require a substantial amount of money.
Even housewives can contribute significantly to this important aspect of a family. If they find any problem, they may read saving money from being a housewife.
Of late rate of the girl, education is increasing by leaps and bounds all over the world as well as in India. Educate girls also play a very good role in earnings and savings. They now act as a blessing to their families.
Therefore, we come to know that we have to save money for various purposes of life. These are reasons to save money. Next, we will start setting goals to meet various financial targets. By the by, we can use our leisure time and earn some extra money by doing some online freelancing jobs.
We save money for some life-changing goals.
Retirement is perhaps number 1. We may save money to purchase a flat or a car, to meet education expenses particularly higher or technical. It may be a marriage of self or child or someone else in the family. We may need funds for tour and travels. A lump sum amount is also needed to buy some golden/diamond ornaments etc.
Nowadays, almost every family use electronic gadgets like android phones, computer or laptop, TV, air-conditioner, fridge, washing machine, water purifier, chimney etc. and they got damaged very rapidly. We have to repair or purchase a new one. They all together need a huge fund.
From the above discussion, we come to know the reasons to save money. I will say only one thing at last. To tell the truth, saving money is not an easy affair. We require our positive attitude as well as a high level of motivation to make it a grand success.
Because, we need happiness, therefore we will save and save sufficiently.
Therefore, we will be able to enjoy our life a great deal.