5 Reasons Why Saving Money Should Be A Priority

5 Reasons Why Saving Money Should Be A Priority

Many people never actually take a savings account too seriously, but what everyone  should know is that they should put saving money on the top of their priorities. The absence of an a savings account can lead to a severe financial setback. It’s inevitable that unforeseen expenses are going to come out of the blue so one need to be prepared all the time to avoid making unnecessary loans.

Here are some vital reasons why you ought to have a savings account;

1. Get Out of Debt

If you ever want to get out of debt, you have to have some money saved. Sounds ironic, doesn’t it? However, the credit cards are never going to get paid off if you have to keep using them for every “emergency” that comes along. Even if you are an awesome planner, stats show that half of us experience at least one totally unexpected expense each year (and half of those will be unexpected car trouble).

 2. Unforeseen Expenses

What will you do if your car needs some major repairs? Do you a few thousands on hand? What if your house needs some repairs, or it is discovered that you are living in a building that leaks? You can’t always count on the bank to lend you money for all of these things. It is much better to anticipate a worst case scenario and have some money saved.

3. Emergencies

As much as we hope that emergencies won’t happen, we all know that they do. A family member can develop a health issue, you might need to make an emergency trip, you may have a car accident or breakdown, severe weather could flood your basement or crack your pipes, or you may have to fly to a loved one’s funeral. Any of these emergencies can be expensive, and we all know that we will likely encounter some sort of emergency from time to time. So why not be prepared rather than potentially become another victim of an emergency.