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Why do we save money

Why do we save money

Some things we learn by experiencing them and some things we learn by observing. Saving money is a necessity of life which some of us realize as naturally as they realized the need to breathe yet some of us learn to save money only when they face very difficult circumstances. Having to live without any money for your immediate needs can be very challenging. The first reason why people save is because they want to stay prepared for sudden expenses that may arise. Putting your money in a bank account helps you earn interest on the sum. It is definitely a better way of saving money than just stashing it inside your locker.

Life is full of uncertainties and financial circumstances seem to change often. You might be earning a good deal of money at present but you never know if you will be able to work at the same pace five years from now. It is always better to be prepared for adversities. Apart from crisis management saving money also allows us to make our dreams come true. People save so that they can buy something expensive in the future or help their kids with college fees. People also save so that they can afford medical treatments or travel to faraway places.

Saving money is a habit that helps us avoid many problems and helps us retain our dignity. You can buy an expensive thing with your credit card but that will mean an interest plus the actual amount has to be returned to the bank by you. Saving money in bank accounts or investing them wisely on different funds can increase the amount of sum you earned in the first place. We all want to enjoy the luxuries of life but work pressure comes between us and enjoyment. Saving money lets you retire early than you thought possible because you have sufficient money for your future in your bank accounts.

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Editor-in-Chief and lead author at WhyDo