When we look at the financial problems that most Nigerians face today, such as deficits, bankruptcies anddebts, it showsa lot of them have no idea of how vitalsaving money is orit could just simply be ignorance. Financial saving is something you must endeavor to practice always as it comes with several benefits. These benefits range from financial stability to the abilityto achieve one’s dreams.
Some people always spendtheir money on unnecessary things they don’t need, especially when they receive newpay. This is not a good habit for anyone who wants to be financially stable. This is why it’s importantto create a personal budget as well as know the differences between NEED and WANT.
No one knows tomorrow, and it is a fact of life thatunanticipated difficulties and challenges may occur. Life emergencies are the majorrationale behind financial saving. These emergencies range from being involved in a seriousaccident or losing your job. And remember, you don’t know when an emergency (which comes with a seriousneed for additional money) might occur. The seriousness of such an emergencycan possibly be reduced if you have the required cash on hand, and you will be able to recover faster.
Below are other reasons why saving money isimportantare:
1. Make Your Money Work for You
A lot of Nigerians spend all their time and lives working hard for money. The little secret they don’t know is that when you save money, money will start to work for you. Let us use interest payments as an example. All interest payments go directly to the pockets of savers or investors. This is why saving or investing money is one of the best financial decisions.
You will earn interest on your savings without doing any work. This simplymeans the money is working for you. It is never too late for you to starting saving your money. If you do so now, the money will start compounding and working for you.
2. Help You Achieve Your Dreams
Study the people who have managed to achieve their dreams or numerous things in life, and you will realize that they don’t live salary to salary. They are the class of people who understand the importance of saving money. Saving money enables you to plan futuristically and invest in what will make you successful. In fact, if a good investment or deal surfaces, you will be in a position to grab them quickly.
3. Gives Financial Freedom
No one feels goodfor depending on an individual or organization to spend money. When you have nothing in your savings account, you will find it very difficult to confront that your boss or company that is mistreating you. Moreover, government and companies usually fail, andthey are entities that should never be totally dependedupon for retirement or financial freedom. When you save your money or invest it wisely, you will get the financialfreedom and be in charge of your own life.
4. Reduces Stress and Increases Confidence
Our financial state is usually reflected in our everyday lives. The people who refuse tosave become more financially stressed and display less financialconfidence. Those who have financial security are usually more confident and feel sense of freedom.
5. A Sign of Maturity
When you save money, you are literally suspending instant gratification for future benefits. While the act of saving money is quite difficult, doing so shows one’s level of maturity and ability tomakesmart decisionsto become financially free. You will even be proud of and endeavor to build your ability to sacrifice instant enjoyment for future enjoyment.
6. Life Satisfaction or Fulfilment
Those who have the understanding and habit of saving money often value what they have and are satisfied with them. They also learn to focus less on the things they don’t have. Therefore, you can find more satisfaction in life if you learn to save money rather than spend it lavishly or buy thingsyou do not need. You will find it easy to meet the three basic needs of life — food, clothing andshelter.
7. Gives Peace of Mind
When an individual has money in his/her bank accounts and can withdraw it when there is an emergency, such a personwill always have the rest of mind knowing that he or she is not borrowing. Borrowing has its own costs, andmost borrowers don’t have the rest of mind because they will always think about repaying what they borrowed. And remember, overthinkingis detrimental to human health. So if you save for the rainy day, you will avoid incurring unnecessary debts in the future and live worry free.
When you understand how important saving money is, life will become much easier for you and you will enjoy peace of mind. Most of the wealthy people we have today became wealthy because they were hardworking and made smartinvestment and savings decisions. Always remember that saving money is a vital step for you to have a better future and to achieve that elusive financial freedom.