Importance of Saving Money

943 Words4 Pages
Saving Money With the economy on the rise, now is the perfect time to start being smart about money and create a savings plan. It is important to save money and have a cushion for what life may have in store. One can never be too prepared in the aspect of savings, and should prepare for the unexpected when planning a future. In order to be successful, one must start by creating a budget in order to avoid debt and be able to create a saving so a future can be planned. For many people, saving money isn't a top priority because a majority of them have been taught to live outside their means and spend, spend, spend. This bad habit needs to be broken. The first step in making a plan requires recording every transaction being spent that month. Next step would be creating a budget and depositing all excess money into a savings account. Then look back at the transactions and see what could be cut back to increase the savings. Paul Gentile, executive vice president, strategic communications and engagement at the Credit National Association states, "no matter what, put something away each month" (Gentile Gives Savings Tips ). It may not be easy, but every little bit counts. Twenty dollars a month can add up quickly compared to not saving at all. Lastly, pledge to stick to your plan, revisit monthly if necessary to adjust amounts. With a busy life and many obligations, forgetting to protect one's self against the unexpected misfortunes in life such as injury, illness, or loss of a job, can lead to negative financial decisions. In order to be protected from the unexpected, it is important to be prepared with a savings account. George Clason writes in The Richest Man in Babylon, "A part of all you earn is yours to keep" and "pay yourself first" (Clason 13), meaning to follow the general rule of thumb and save ten percent of the monthly net income. It is also generally a
Open Document