We may ask ourselves, why save? If we have enough money for everything, we live well, why should we set aside money every month?
There are many reasons to start saving. People start saving for a variety of reasons, here are 3 of them:
Saving for emergencies
It is important to have our money set aside in the event of an accident or other unexpected cost .
For example, an unexpected fire or a car accident can occur at any time. It is good if our savings for emergencies are saved by approx. Equal to our 3-5 monthly costs . That is, if our costs are approx. $ 80,000, your savings would be between $ 200,000 and $ 400,000.
In addition to savings, it is good to have insurance that covers most of the unexpected expenses.
For peace of mind
When we have little money, we often wonder how we will pay the next month’s costs. Or is it that we are in danger of losing our job? Such worries lead to a very stressful life and, as we know, stress can cause many illnesses.
If you open a savings account , you will be less worried about such things, and you can rest assured that we will have the money to cover your expenses even in difficult times. Whether it’s paying bills or other monthly costs.
Therefore, it is important that you start saving as soon as possible, and not just think about it once the trouble has occurred.
As money grows
As most of us know, keeping our money in the bank will increase as banks give interest on the money in the account. In a savings account, this interest rate is very low, and at most, we get that money increases with inflation , so it will not lose its purchasing power.
In the case of bank deposits , the interest is higher. If you want to save money in the long run and don’t have to always have the money at your disposal, you can get a higher interest on your money.
The more money you save, the more you can win and the more relaxed your life will be. We know that money in the bank is safe and that no one can steal it. Banks are covered by guarantee-based deposit insurance, which covers up to EUR 100,000 (about HUF 32 million) in the event of a bank failure.
Let’s not forget about investments either. If you want to make a bigger fortune, you can’t do it with traditional savings, so you need to invest your money in things that can make it profitable.
3 Best Ways to Save
Now that we know the reasons for saving , it’s good to know how we can start it. Saving is not fun and not fun, and even if we take an amount from our monthly budget every month and put it in the bank, it can be painful.
Here are some ways to make your savings easier:
1. Automate Savings
Saving should not be something we think about in everyday life. We recommend that you select a certain amount of money from your payment account , which will be automatically transferred to your savings account on a monthly basis.
There are also credit cards that you can use to save automatically. In this case, a fraction of the amount you pay for your purchases will be credited to your account.
2. Save costs
Here are some general savings tips that probably everyone has heard of. This does not mean that they are not important.
- It is a good idea to buy in large stocks , especially when there are deliveries. Calculate how much you will save on such a purchase.
- You can save on water, electricity and transport.
- Is it better to go by bike ?
- LED bulbs can be a good investment in the long run as they are more economical and consume much less.
- Economical faucets and shower heads also save you money.
In addition, it is worth considering where else you can save. If you have clothes that you do not use because they are torn in a less visible place, sew them.
Do not always buy first. Ask yourself if you really need it before buying a new dress, phone or anything else?
You also tend to spend the money you save, so put everything you save by saving it in your savings account .
3. Think about your safety
As mentioned earlier, security and tranquility are a big part of the savings.
Describe why saving is important to you. If your computer is stolen or your phone is lost, consider savings as a solution , not a bank account that you can use to buy something at any time.
You will feel better because you know that you have the means to eliminate financial problems when they occur.
Of course, we hope you do not have such problems, but we warmly recommend that you save your money in case something goes wrong. With just $ 200 set aside, it’s much more than just $ 0.