Importance of saving money for the future

1. @ThelessonsGuy Importance of saving money for the future A guide by Arjun & Arya

2. If you are asking the question “Why you need to save money?” that by itself is a good sign because you are already saving or is planning to save money. Most people are not bothered about savings since they can pay and get what they want. The worst part is that even if you are not able to afford something, you can simply swipe the magic card for credit. It is like in the story “The Grasshopper, and the Ant” When life is at its best, you can get everything you need, the last thing in your mind is about the hard winter ahead. The one difference between the story and reality is that seasons cycle back, but for us, the lost time is never coming back.

3. Why do you need to save money 1) For Retirement Our life expectancy is currently at around 81 years, and it is going up by three months every year. If you are retiring at age 60 and live till you are 100, that is 40 more years that you can live and enjoy, but if you have not saved up, you will not be able to retire. The amount you saved up will determine whether you can enjoy your later years of life or live on someone else’s pity

4. 2) Power of compound interest The real power of compound interest shows itself only with time. For example: If you deposit $100 every month for 10 yrs with 8% interest, you will get the interest amount as shown below Years Deposit amount Final Sum Interest amount 10 12,000 18,416 6,416 20 24,000 59,294 35,294 As you can see, with every additional 10 yrs, the interest amount grows exponentially.

5. 3) Saving money can give you freedom If you have money saved up, it gives you the ability to take calculated risks. For instance, if you are stuck with a job or a boss you don’t like you can move out in search for better opportunities, but if you are in debt having to pay back your loans you wouldn’t risk losing your job and will clinging onto it no matter what. If you are financially well, you are less likely to put dampers on your dreams. This is one fact that in importance of saving money for the future. 4) Money gives you financial security According to a study published in NCBI (National Center for Biotechnology Information), psychological stress increases with financial stress, potentially causing a lot of health issues.

6. 5) Saving is entertaining When I was a kid, I used to enjoy playing PC games, but once I started earning, I couldn’t enjoy them any longer. No matter what I did, gaming made me feel empty inside. Now I have invested in gold, stock market, mutual funds, bank deposits, digital currency, and much more. It excites me to see a small amount of money coming from all these sources, and now I am getting the same kind of kick from managing these resources as I used to get while playing games.

7. 6) Save up an emergency fund When I crisis, If you don’t have an emergency fund, you might have to take up unfavorable deals like High-interest loan Take out your investment when in loss Asking your friends Ideally, you need to have a minimum of 3 to 6 months of your living expenses in a savings account.

8. 7) Save for big events You need to save up for events like the wedding, your child’s university, buying a house, and things along those lines. If you don’t do anything, you will regret those choices at the time of these needs. Final Thought - Money is not everything, but it gives you immense power, a lack of it could also mean you are at the very bottom of the food chain. Thank You!! Related stories from @The Lessons Guy How to improve work life balance How to deal with difficult people at work