Saving money is one of the main things that people can do to protect themselves. Whether you invest or not you are making an investment in yourself when you save money. There are a dozen ways to save money and a dozen more reason that you should save. The investment that it takes to save is time and attention to detail rather than risking funds that you don’t actually have to lose.
Security is the main reason that saving money is a sound investment. The financial demands of life can sometimes be difficult to meet. When we have savings we know that we can survive the rough patches without too much harm being done. When we manage to make it through a rough spot not only without touching savings but with an increase in savings it is even better.
Learning how to save teaches you how to live within your means. When you dedicate yourself to setting money aside and waiting to make major purchases until you can afford to pay cash for them you are learning to live within your means. Living with what you can actually afford instead of what you want teaches you how to sacrifice and reduce expenses when you have no other choice without feeling as if you are depriving yourself.
The way you save money can earn you money as well. When money is placed in a savings account with even minimal interest payments it is earning you money. When you reduce the amount that you spend you have money left at the end of the month; this money can be set aside to earn you money. Splitting the money into an emergency fund and a long term fund will help to ensure that you are prepared.
No one is immune to job loss or illness. Without savings when these events inevitably occur in your life you are without anything to fall back on. A cut in pay, reduction in hours or total lost of income can leave you with nothing to fall back on. The lack of a safety net can leave you without even a roof over your head as you wonder how you are going to make ends meet. Nothing is worse than not knowing where your next meal is coming from or where you are going to sleep that night.
Saving money is the wisest investment that you can make. You secure your future, and make sure that in the event the worst does happen you can take care of yourself as you recover from the stumble rather than having to scrap yourself off the pavement so to speak. When it comes to preparing for the unexpected there is no better tool than saving.