Regardless of the expenses that you have each month, you must allocate a portion of your salary for savings that you will only touch during the rainy days. There will always be times in our lives when the most unexpected things can happen. If we don’t have money when these instances occur, it could be very tough. Emergency funds must remain there and must be left untouched.
Family’s health care
This is one of the biggest reasons why you have to save money. You might say that your family members are insured. The truth is despite the insurance policy that you have taken, there will still be a portion that will be left uncovered. You need to take your own money out to repay what is yet to be covered. Accidents for instance or serious illnesses like cancer are very costly. This is where your savings should go to. No one knows when it will ever happen.
You also don’t know until when you can hold your job. Tenure is such a fragile thing especially these days when businesses are going bankrupt left and right. You can legally fight to get your job back all you want but this will just cost you more money. This is why you have to prepare for the possibility of job loss. If it happens, then you need a backup plan. Of course, you are to apply for another job. Considering your age and the fact that you were fired, searching for a new job could be a challenge. This is why you need your savings to help you cope with the daily needs while you are still out of job.
You can never prepare for this. There will always come a time when something at home needs to be fixed. You need to hire plumber Para Hills for instance to repair your plumbing system. Imagine living inside your house for days without potable water. It could be a disaster. When you have savings, then you can have the problems fixed right away.
These are just some of the instances in which you would need money right away. If you have saved enough money, then you have prepared yourself for these possibilities. You will not panic when the time comes. You know that you have enough to spend for the emergency situation and still cope up with all other expenses.
This also means that you have to stay disciplined. You have to try your best to not be tempted buying things no matter how much you want them. If those items are not on the budget, then don’t buy them. You can suspend travel plans if it would cost you more than what you have expected. You also don’t need to eat out regularly. You can cook meals at home instead. Try your best to always save money for you don’t know what will happen in the future. It is nice to always have enough money when times are really tough.