You should already know that saving is crucial for making sure your life is as stress-free as possible. Having debt monkeys on your back is no easy way to live, and it affects you, your family and your health. Here are some reasons why having some extra funds is a fantastic idea.
Securing a Home for Yourself
Owning a home is a privilege. Most people don't have their own property and are therefore at risk of being homeless when a landlord decides to sell up. Owning a home is a valuable asset and provides you with what you need. But there is also a sense of security that comes with it. Getting on the property ladder makes your future a little brighter. But your affordability is crucial when applying for a mortgage. It always helps to speak to a trusted mortgage broker first.
Having a Backup Plan
Do you know what will happen tomorrow? No! Nobody does. Unfortunately, homes burn down, people get sick, and jobs are lost. Savings can cushion the blow when something unexpected happens. This is especially useful when it is a life event that costs a lot of money. An emergency fund will help when you need access to a substantial amount of cash due to an unforeseen event. Even if it is just the washing machine or shower springing a leak all of a sudden!
Saving is Crucial for Quality of Life
Who doesn't want a nice life? Of course, you do. This is something most of us strive for. Especially when we are in a loving relationship or have a family to look after. But the sad fact is that there are millions of people who can't even afford life's necessities, never mind luxuries. The JRF found that in the UK, over 3.8 million people are considered genuinely destitute. This means they cannot even afford to heat their homes or feed themselves regularly.
Ensuring You Stay Debt-Free
Most of us go through life making big purchases. Cars, sofas and big-screen TVs! We have all done it. However, we usually use credit services or some kind of loan to do so. Loans and other debts can weigh heavily on your mind and cause all sorts of problems if you don't pay them back. Having savings means you never have to use services like these and take on more debt. It's Perfectly fine to dip into the savings every now and then for essential life upgrades.
Enjoying a Nice Retirement
What's it all for if not for enjoying a well-deserved rest when you retire? The last thing you want is to enter retirement with little money reserved. Pensions will only get you so far. If you want a genuinely good quality of life in retirement, you need a substantial amount of cash reserves, too! Some underestimate what they will need and don't consider inflation. You can offset inflationary costs by keeping your savings in an account that pays interest rather than under the bed!
Summary
Getting on the property ladder is just one reason why saving is crucial. You also need some extra money to enjoy the finer things in life such as holidays. But one of the most vital reasons why you need to save some extra cash is to have enough to enjoy a peaceful retirement.
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