Now the first question is why should we save?
Lets begin…
Assuming you are gainfully employed and earn enough to defray your expenses. No matter how much you earn it is never enough ..there is always stuff you can spend on.. cell phones, gadgets, watches, luxury bags , clothes and more clothes….list can go on..
As Indians the virtue of savings is taught to us right from the time that we are crawling on our fours. A penny saved is a penny earned is a mantra to live by..
Now the question is when there is so fun in spending our hard earned money, why should we save? There is so much joy in spending.
New shiny objects always give pleasure even is its for a short while.. Retail therapy works…Iam a bright, shining example of it..
Anyways, I digress.. Why should we save?
The usual response is ,” For a rainy day”… , ” For the future”.. , ” For kids education”.. ” For buying a house”
Obviously you save for all of the above .. sometimes young people are preached a lot about saving without giving them a simple reasoning on the why to convince them.
Most of them lack the maturity and life experience to imagine that they will not be young forever, they will have needs which their current income will not be able to satisfy. So why should one save?
For emergencies.. Self explanatory.. especially medical needs.
1. For buying big assets .. Say like a car or a house. You will have to move out of your parents home someday.. you will get tired of moving from one rented accommodation to another..and believe it or not you will crave a roof of your own.
2. Setting aside money for known forseen and unforseen future expenses like marriage , kids and their education.
3. Retirement ..Can be a wonderful period of your lives if you have a nest egg which you can live off. Otherwise it will be pure misery.
Even if you are just making ends meet, its important to save.
Even if you save just a little bit.. do save!
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