How and Why You Should Save Money

Saving money every month is important but it is very difficult if you do not handle your finances carefully.  Many people don’t have a clear idea of how much they should save and why they should save money. The ideal way of saving relies on the reasons why you are saving.

As much as people are advised to save, the writer sincerely believes that you must pay yourself first before paying for your monthly expenses.  Spoil yourself and have some fun. Set some of the funds aside to spend on shopping, food and going out for drinks with friends.

coins in asving jarsHowever, your future is very important. You must be aware that saving money is a essential. But not something that should limit the way you to do certain things.  Look at it in a good way like; saving money is paying your own bill. It’s like managing your own bankroll at a casino house.

There are certain factors to consider when saving money:

Retirement

We are all going to get old one day and it is very wise to secure your retirement by saving your monthly income.  Approximately you should save at least 5-10 per cent of your income for retirement. This rate will not daunt or stress your finances, and you will even have some dimes to play some online slot games in your old age.

Emergency

In our day to day activities, you never know when and where an emergency will strike. It is advisable to save some of the money for emergencies. The only alternative to save money for emergencies is to get insurance cover. Investing in insurance is very important as you will pay low monthly premiums. In the event that an emergency occurs, there is no reason to stress your monthly salary as you have the insurer to cover the burden.

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