- Personal Finance»
- Frugal Living
Why it's neccessary to save money
There's nothing wrong with that approach! It's setting a particular goal to buy or purchase that thing.
How many people out there save money in order to prepare for an unexpected financial situation that might hit in the near future ?
These types of situations can happen to anybody, but the problem is that we aren't trained in our mind to think what situation could happen in the near future.
If the average person did train their mind to think and prepare for unexpected financial situations, we won't have to worry or be stressed when it happens.
To add to this statement, the school system isn't going to teach a person how to prepare for unexpected financial situations. A lot of times, it could come the hard way .
To avoid these things, I want to give you a couple of reasons why you need to save money.
1). Layoffs or hours being cut
There is no job that is truly safe right now. It could be a big or small company. This doesn't make the difference.
Today, a lot of companies play the game of cutting hours!
In most cases , a company can have plenty of cashflow or money and still slash the hours of the lower employees !
Why they do this? First reason because a lot of the presidents or top-managers will not take a huge salary cut!
The other reason is because they honestly might not be getting a lot of business coming through at all for that week, which is understandable.
Adding to statement,the CEO, the vice president, and the top -managers only know what is truly going on at the company, not the lower employees.
Besides, the presidents and top managers of a company aren't going to tell the lower employees what's financial health of a company.
If they did, it would cause some employees to be angry of how much a company is making or some people would be quickly making moves to find another job.
Understand this, a majority CEO's, vice -presidents and top-mangers of companies aren't looking out for you. They only looking out for their salaries , and the money that flows there. Not the employees.
My point is that if layoff or a drastic cut of hours does happen to you, if you have money saved up. There will be plenty of money to cover expenses and bills until finding another job.
Saving money ahead of time before a situation happens like that, it causes a person to be stress free.
2). Car Repairs
In this situation, something with the car can happen any day or time. Most situations it's better to have another side vehicle on the side to use just in case your car ever need repairs.
In this day and time, car repairs can be expensive. Well unless, you know a mechanic that's your family that can look at it for free.
Saving up for this type of situation and having another car can save a lot of heart ache and worry.
My final thoughts is that we should see a savings account as an opportunity to prepare for any unexpected financial matter that shows up.
When prepared for something, you don't have to worry about it.