There are a number of benefits to saving money. These benefits turn into risks when you don’t save money. When you examine what could and probably will go wrong you will find the risks of not saving money are too great not to make the effort. This article will cover some of the risks that you are taking when you don’t make the effort to save money.
When you find yourself unemployed you may or may not find that you can draw unemployment. When you can draw unemployment the stress is relieved for a little while but it doesn’t last forever. Will you be able to live off of your unemployment until you can find a job? What if your unemployment runs out before you find another job? While cutting expenses is a good idea when you find yourself unemployed you can only cut them so far.
What if you become ill? When you get sick chances are that you are not only going to miss work but acquire doctors bills as well. Even if you return to work the first day you are able you might have a few bills that fall behind as a result of the time you have lost working. When you are home sick unless it’s related to the job and you receive workman’s compensation you aren’t getting paid for it. When you return to work you could still miss hours or days because of follow ups with your doctor which decrease the amount of your paycheck.
Transportation can be affected by not saving money. If unemployment or illness occur you could find yourself having your car repossessed by the loss of income. The lack of savings means that you might not be able to keep up your car payment. Should your car break down you may find that you can not pay for the repairs when you don’t have savings. This inability to fix your car or the possible repossession of your car can make you dependent on others to get to work. Being dependent on someone else to get to work can put your job at risk because there is no way to be sure that this secondary transportation will always be available when you need it.
When retirement comes you could find yourself on a fixed income that doesn’t cover your expenses. The lifestyle that you have become accustomed to while you worked a full time job could change drastically. There are things that we become accustomed too when we work such as cable television and going out when we want to. Without savings at retirement there may be times when you realize that not only are you going to have to stop going out but you have to go to extremes in order to stretch your monthly retirement income.
When you don’t save money you run the risk of losing everything when the unexpected occurs. Keeping up with savings can only benefit in the long run. The risk of not saving are too great not to take advantage of its benefits.