Gary Saitowitz explains why saving money is necessary for a more secure future
Gary Saitowitz as getting credit is becoming accessible, people think that they do not need to save money. But it is necessary to change this kind of consumer mentality because you do not know how long you can afford to pay the monthly bills. Unfortunately, people are not willing to save because they feel it is easy to buy things on credit. However, you should save money because you do not know how uncertain and also insecure the future might turn out to be. Accordingly, it is necessary to keep cash in your hand to take action if any emergency arises.
Gary Saitowitz explains that saving money will make you financially independent
You must know that the measuring stick for calculating how wealthy a person is depends on their finances. The more financially independent you are, the wealthier you will appear. You can make life choices only when you are financially independent. The freedom to make decisions in life comes with a good paycheque. With financial independence, you can create various choices like going for a vacation whenever you desire, switching jobs, investing in a startup, and also even starting your business venture. Even helping your family members or indulging in a more satisfying career. It may not be financially beneficial, but it will bring satisfaction to you to do something that you like.
Most people love to retire and do something they want rather than do something they get forced to do. Economic independence does not mean being rich, but your finances make you feel rich and also help you achieve your wildest dreams. Thus having savings on which you can depend will make you feel rich.
Save up to buy a home
If you want to buy your dream home, you have to save up. As even if you take a bank loan, you have to make some amount of down payment. No bank allows you to borrow down payment. Buying homes is a costly affair, and also it requires a lot of other expenditures. So if you save up, you will open the door to own your dream home.
Save up to clear your debts
It is indispensable that you save money spent on unnecessary items. It is vital to have a reserve fund. You can use this fund to clear your monthly bill installments if there is a pile-up. Do not let your monthly bills pile up as late payment charges might make a hole in your pocket. Owning a reserve fund will also help you keep a note of your expenditure not to spend more than what you can afford.
Save up to handle emergencies or unforeseen circumstances
You cannot deny that sometimes unforeseen circumstances and also emergencies pop up out of nowhere, and you need to have an emergency fund to handle these situations. You must anticipate an emergency and keep some reserve funds to deal with them.
Thus Gary Saitowitz suggests that you must develop a habit of setting aside that extra money you earn out of bonus or any tax refund. These small savings might lead up to a decent reserve fund to deal with unforeseen situations.