So, you have a job, which pays what you need every month. You may also be thinking your monthly wage covers all of your household bills and outgoings perfectly such as your rent or mortgage, gas and electricity bills, your car and even the occasional night out or shopping session. This can leave many people thinking to themselves that they do not need to save, and some may not even see the point in doing so because their wage covers all their daily living costs.
However, this way of managing your money is actually rather risky. Not making room in your budget for any sort of savings could see you experience some sort of debt in the future, or see you having to take out an instant payday loan to cover any emergency costs that you did not have savings for.
If you are one of many people in the UK, or even around the world, who does not actively try to save money there many events that could arise seeing you wish that you had put some cash away when you had the chance.
For example, if your friends or members of your family suggest a holiday over Christmas, New Year or any other time that is within a few months time that they would like you to be part of – how would you pay for it. Your credit card may pay for your flights, but what about your spending money, or what about when you return, you would need to repay your credit card bill, thus would have a new higher outgoing you didn’t have before. Having savings would mean you have access to cash, which has been specifically put away for reasons like holidays, thus you needn’t miss out on fun trips such as a summer in Ibiza!
Savings can also be vital should you find yourself out of work. In today’s financial world, many employees have found themselves from having a well paid secure job one day, to the next being made redundant and finding it tough to find a new job that pays just as well. Without savings to fall back on in the event of a job loss or even in the event of long term illness, you could very easily and quickly find yourself unable to pay your rent or other outgoings. Savings would give you a little breathing space, and the ability to cover all of your bills until you get a new job, without having to incur any debt.
If you own a car, there might be a time when your car is damaged or needs replaced, and sometimes these costs may not be covered by your insurance providers. Without savings you could find yourself unable to get your car fixed, or replaced. This would leave you having to use public transport or even having to walk to where you need to, although this may be good exercise, you will have to adjust back to being without the luxury of your car. However, savings would mean you can get the work you need done to your car or even buy a new one of you needed.
