How to save money and why do you need it?
There are many reasons as to why you should save money.
Different people save for different reasons, but it’s easier to save if you have a clear goal or purpose for the money you are saving.
Below is a list of reasons that explains why you should save:
1. Become monetarily independent
Being monetarily independent is not the same as being wealthy, but knowing that you will be okay even if you don’t receive your monthly paycheck can give you peace of mind. Someone who is monetarily independent has assets that would generate income. In order to achieve monetarily independent, you need to save money and make good investments.
2. For education
It is always a good idea to invest for a better future, and the best to obtain that is by getting a solid education.
Each year the cost of education keeps getting higher. If you have goals of studying at a college or university,
you will need lots of funds.
3. Own a house
Just like education, real-estate prices are also going up. If you are planning on buying or building a house,
it’s a good idea to start saving now itself. When you have more funds you have to make a down payment, you’ll have more power to negotiate the terms of your loan. As a result, you may be able to get a better interest rate
or even buy a bigger house that’s more expensive.
4. For emergencies
As much as we hope that predicaments won’t happen, we all know that they do. A family member could get terminally ill, you might need to make an emergency trip, you may have a car accident or a breakdown, bad weather could flood your basement or crack your pipes, and the list goes on. Most of these unexpected emergencies can be quite expensive.
Therefore, you have to be prepared rather than becoming another victim.
How to save money?
Follow the 60-40 rule. 60% of your gross income should go to fixed and overhead expenses. The remaining 40% should
get divided into four chunks of 10% each for retirement savings, emergencies, long-term savings, and travel or
entertainment.
Similar articles
Avurudu Aruna – let your luck rise with the sun!🌞 As the first golden rays of the Sinhala and Tamil New Year sun touch the earth, a season of new...
We are excited to introduce the new Referral Program from CashX exclusively for our customers!🔥 Now, you can share your positive CashX experience with friends and receive bonus rewards in...
Wishing you a year full of joy and success! Let’s make this New Year a fresh start for all good things to come. To celebrate, we’re giving new customers 40%...
May this New Year bring you and your loved ones happiness, good health and prosperity. On this holiday we have prepared gifts for you. Promotion rules: • in order to...
Monetary emergencies can arise anytime, and you may require instant funds to deal with them. One of the best ways to get immediate money is to avail of a personal...
The term Fintech (Monetary Technology) refers to software and other modern technologies used by businesses that provide automated and improved monetary services. The fast and innovative progress such as Mobile...
Why and How to Borrow Online Although online banking has been around for years, an adaptation of online credit has been slow. Fortunately, there are now plenty of good online...
What is monetary independence? Monetary independence is freedom from worries about money. To many people, this might seem like a pipe dream. We are constantly surrounded by advertisements that make...
Sri Lanka has begun to embrace the values of entrepreneurship, which many have come to expect. Starting your own business. In the beginning, most of these businesses started with minimal...