A financial crisis is a challenging situation that every family faces, especially during the continuous diffusion of the Corona Virus Disease 2019 pandemic. It is not surprising, considering multiple land-based enterprises halted their services due to the spread of COVID-19. It highly impacts numerous employees like a domino effect since most companies have a “no work, no pay” policy.
Suppose you are one of those people who are in the middle of a financial crisis and are concerned about the future; you need to ask yourself: “What is the Importance of Saving Money?”
As we all know, money can be evil. It drives people to the point of doing illegal activities to earn. That is why an individual needs to see the importance of saving money and the proper ways of making and spending it.
The significance of saving money is tied to the concept of equity and risk management. In other words, if an individual has enough money saved for the “what if” emergencies are bound to occur, they have the edge over the worldwide population because they are prepared for the “what ifs.” However, saving money for the “what ifs” can cause a lot to lose in one’s financial stability if a person ignores the day-to-day happenings in their financial portfolio.
So, what is the importance of saving money specifically for “what if” situations that could arise in the future?
The top reason is that having an emergency fund gives individuals financial stability. Having an emergency savings account or an emergency fund is far superior to having credit card debt and overdraft fees that can cost hundreds or even thousands of dollars per month. A goal to save is as essential as losing weight, eating healthily, getting more exercise, and saving money for the “what ifs” give a person an edge over the rest of the population.
Evaluating the needs in our daily lives and determining what steps to take towards improving the situation while also setting aside a reasonable amount of money to cover those needs is a big help. It is the most obvious answer for the avoidance of financial stress.
Financial stress is one of the leading causes of physical illness and disease nowadays.
Another advantage of saving money per month is that an individual will have a buffer to avoid this pressure. It gives personal financial freedom. Although having an emergency savings account may seem like an unnecessary extravagance, it can significantly benefit in a time of need.
Thus, iChoose.PH, the most known company that helps consumers compare credit cards PH, created an infographic with all the practical tips to save money: