4 Crucial Reasons Why You Should Start Saving Today

1:18:00 PM Rhea Mocorro 0 Comments

Image from thebeautybean

Most Filipinos do not save for the rainy days because they spend their salaries on mortgages or other unnecessary expenses such as eating out on payday and lavish celebrations in the household or at the office.

This might give us instant gratification but this will rob us of savings that we can use as the need for cash arises. Need for cash doesn’t mean impulse buys but important events that require money immediately.

As the popular saying goes, prevention is better than cure. Some people realize that they need to save after they get buried in debt and realize the value of money.
Here are the some of the situations that are reasons for you to open that savings account today:

Investing

It is not advisable to have all your money into investments because there is risk of losing money in them, as much as there is a high chance that you will earn from them, too.

According to Randell Tiongson’s 5 points on the path to financial freedom, getting to investing must come after you have a savings account. Investment products such as stocks, bonds, UITFs, and mutual funds have higher interest than a bank account but you cannot withdraw immediately in case you need immediate cash.

Emergency Situations

Situations such as sudden illnesses and getting into accidents need immediate cash for any dues that needs to be taken care of. These are the kinds of events that may occur anytime so it would be helpful if you have the funds ready for them.

Retirement

The main point why you should save money is to ensure a great future for you and your loved ones especially in the time where you will not have active income. Make sure that when you’re still active, strive to earn as much as you can. Retirement doesn’t mean it could happen only when you’re old. The earlier you start saving, the more comfortable your retirement would be.

Unforeseen major life changes

There are predictable life events that we save for because we do not know when they will happen. Some examples of such life events are weddings, having a child, and sudden death in the family.

Most weddings held in Metro Manila range from Php200,000 onwards, and this is considering a tight budget. Normal delivery of a child costs Php20,000 up to Php102,000, while caesarian section can range from Php21,000 to Php145,000.00. This cost excludes the room fees in the hospital.

Final Thoughts

Saving relieves our readiness for any unforeseen or expected events in our life. All of us have the capacity to save; the only question is when to start. When do you start saving? Ideally, it was yesterday. The next ideal date is NOW.

Author Bio:
Kyle Kam is a Digital Marketing Specialist of MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.

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