Posted on Tuesday, October 23rd, 2018 at 7:00 am
There are plenty of ways that people can start saving money. You’ve probably heard quite a bit of advice about how to do it. What you may not have heard are the reasons why you should save money. Here are a few reasons to consider.
To Make an Emergency Fund
An emergency fund is an important thing to have. It is money that you intentionally set aside to use in case of emergency. Use the emergency fund money to pay for an unexpected car repair, a medical bill your health insurance won’t cover, or to pay bills after losing your job.
How big should your emergency fund be? The minimum should be either two weeks pay or $1,000 (whichever is greater). There is an online Emergency Fund Calculator that can help you figure out how much you need to save.
To Buy a Car
Are you going to buy a new car? You will need to have a down payment in order to get a reasonable interest rate. Save up as much as large of a down payment as you can afford. It might be better for you to buy an affordable used car (that doesn’t need a lot of repairs) than to buy a brand new car.
To Pay for Travel
Thanks to the internet, we are able to stay in touch with friends and family who live far away from us. Travel can be very expensive. Plan ahead and start saving money to pay for airline tickets, hotel rooms, and unexpected expenses.
Many people meet up with friends who live far away at conferences. Doing so will require money for travel expenses, food, drinks, and to buy some of the interesting stuff that is sold at the conference. In other words, you are saving money to ensure you have a great time with your friends.