10 Important Benefits of Saving Money

Saving money requires a lot of discipline. However, with firm determination and setting financial goals, it is not a difficult habit to adopt. Many Singaporeans can benefit greatly from the habit of saving if they choose to do it faithfully. Have a read of Thrifty Two for tips on saving your money then read some of the benefits as described below:

1. Helps in emergencies

Emergencies are always unexpected. Therefore, when they occur, the funds required are usually not part of the regular budget. There will be pressure to look for extra funds at a very short notice. This problem can be compounded if the emergency is a sudden illness or car accident. It could be a matter of life and death. Accumulated savings can go a long way in alleviating the situation. The patient will receive the required treatment immediately. Other emergencies that could be financed through savings are funeral expenses, urgent house repairs and even car repairs. That said, such emergencies usually require a large sum of money. If one lacks the requisite funds, they can consider applying for a personal loan with a licensed money lender in Singapore. This will help to ease their finances for the time being.

2. Cushions against sudden job loss

Job loss is usually traumatic. It can leave a family in a huge crisis. Saving can be a great cushion of comfort at this time of sudden loss of income. It is usually very difficult to borrow money when one is left jobless. Therefore, those who have not been wise enough to save will be down to zero completely after a job loss.

3. Helps to finance vacations

Many Singaporeans would love to go on vacation at least once a year. However, this is normally not possible because of the lack of funds. Having accumulated savings can make the dream of going on vacation a reality. Family and friends can enjoy a time of rest, relaxation and bonding together. Using savings to go on vacation is a much better option than getting into debt.

4. Limits debt

Having some amount in savings can help one to limit the amount of debt burden that they have. Savings can be used to finance certain expenses instead of using a credit card. This will definitely limit the amount of debt liability and will also save the amount that could have been spent on interest. Savings also help one to avoid taking emergency loans when urgent situations occur, further limiting existing debt.

5. Gives financial freedom

Accumulated savings gives one peace of mind and helps him or her to enjoy financial freedom. There is a comfort in one knowing that there is a buffer than can be used if funds are needed urgently. Once you have enough money saved, you won’t have to think twice about the luxury watch you’ve always wanted. This is in contrast to those who live from one salary to the next. They immediately become stuck financially if any unexpected expense arises.

6. Helps prepare for retirement

There are long-term benefits of saving. One of them is having funds available for retirement. Many retirees who rely on a pension usually do not have enough to cater to all their needs. Making a habit of saving a small portion of one’s income over several years can accumulate into a substantial amount of retirement funds. This will make retirement much more comfortable.

All too often, most people find it hard to save money for retirement. This is because of future uncertainties such as whether you will be alive to spend the money or not. Despite this, it would be best to consider saving money which may also come in handy for your beneficiaries if you will not be there to spend it. For example, you can check out sites that help you save and invest money, and consider life insurance, as there are many websites that explain how guaranteed acceptance life insurance works.

Start today and identify what some of the best ways to save money effectively are. For instance, you can start by selling some of the items you no longer use. Sell your Rolex for today’s top prices, and you can save up that money. Have a savings goal and determine what amount of cash you will spare to help you achieve your savings goal.

It would also be wise to consider increasing your savings rate every once in a while. You may not be able to do so in the beginning, and that’s fine. But as time goes by, be flexible enough to increase the percentage rate no matter how small it may be.

7. Helps finance further education

Fees for further education is a major expense in Singapore. Accumulated savings will enable one to further his or her education without having to source funds elsewhere. This will help one to progress quickly in his or her career. This is especially beneficial for those who may not be eligible to apply for a personal loan or education loan.

8. Helps to finance the down payment for a mortgage

Having savings can be the first step towards one becoming a proud homeowner. All banks require that a mortgage applicant places a down payment of a certain percentage before the loan is approved. The amount to be given as a deposit cannot be borrowed. Therefore, the applicant will need to obtain it from savings or from family and friends. Savings will be a better option because family and friends may not have the funds required.

9. Helps to finance a wedding

Weddings are a major expense in Singapore. Many couples end up postponing their ceremony because of financial constraints. Having accumulated savings enables the couple to plan their day confidently. Using savings to finance a wedding is a much better option than taking a wedding loan, because the couple will start their married life together free from debt.

10. Helps to finance the down payment for a car

Depending on the amount required for the car, one can use savings either to purchase the car in full or pay the initial deposit for a car loan. It is more ideal for one to budget for a cheaper car which can be fully financed by the savings, and avoid taking the car loan. This will enable the buyer to save the money that would have been spent on interest, and will also help you build equity in the car which can be borrowed from later if needed. Learn more about this from Max Cash Title Loans.

From the above points, it is obvious that those who exercise the discipline of saving have a much lower probability of entering into financial crisis. It is a worthwhile habit to adopt. But saving money takes time, and if you need money as soon as possible to pay upcoming bills, then go ahead and apply for pinkslip loans today.

Additional Benefit: Gives you a safety net against grand unexpected losses

No matter how large your savings account is at the moment, you always need a safety net that you’ll use in case of emergencies. The amount you save needs to be considerable to your active or passing income and be able to cover more than your average monthly expenses.

You shouldn’t ignore the need to save money, no matter how well set you are financially at the moment. If anything, we’ve seen that situations turn upside down, from people losing their homes in 2008 real-estate crisis after the stock crash or millionaires that lost their lottery winnings in no time. Nobody is safe from unexpected turns of events, but all of us can save for rainy days.