There are people that have lots of money saved up and others that do not have very much. You may wonder to yourself whether it is worth saving money or better to spend it. This can be especially true these days when the interest rates on savings accounts is so low and we are being encouraged to spend money by the government to boost the economy. There are a lot of advantages to saving money though and it is worth having a think about these.
Have Money to Fall back on
One of the main benefits of saving money is that you will have some money to fall back on. This means that you will be able to get your hands on some money when you really need it. It can give you peace of mind to know that the money is there and available for you when you need it and that you will not have to worry if you do need some. It means that whether you have an emergency to pay for or something expensive that you want to buy, then you will have money available to you. It is also there if you lose your job and have no income or other similar situations. A lot of people will feel a lot more secure if they have this buffer and know that they will have the money available to fall back on should they need it there for them.
Can Pay for Things without the Cost of Borrowing
If we need things and do not have the money to hand, we will often borrow money to pay for them. This is okay as it means that we will be able to then afford it and often we will spread the cost of it as well. However, it does mean that we will have to pay out money. This is because borrowing money is never free and we have to pay for it. The cost can be pretty high as well and if we miss repayments there will be even higher charges. Therefore, if we can avoid borrowing money, by using money that we have saved up previously or by saving up for things, then it means that we will be able to buy things for less. This will not be possible for all purchases, as most people will not have enough to buy their own home, but for the smaller things it can be extremely useful and save us a lot of money over the course of our working life.
Can Give Money away
If you have money saved up then it means that if you know someone that needs money, then you can help them out. This could be giving your children a deposit on their first home or helping out grandchildren when they go to university. It could even mean you can give some to a charity or good cause or that you can leave it to someone after you die. It can be a nice feeling knowing that you have money that you will be able to use in this way.
So, even if you cannot get much interest on your money, it can be a good idea to think about saving some up. It can have a lot of benefits to yourself as well as to other people. It can give your peace of mind, be there for an emergency or be there to help out other people. It is not good to save to the detriment of yourself and others and never have fun or treats, but it is also wise to make sure that you do have some money so that you have something for the future.