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Saving Your Money: It’s not a ‘Maybe’, It’s a ‘Must’
Spoiler Alert: You might be in financial danger if you have not been saving!
Have you ever heard someone say “Oh no! I’m so troubled because I have so much money!”? I didn’t think so. This is because money is a crucial asset that everyone needs in their lives. We use it every day to pay for meals, groceries, and items that we need. Plus, with inflation and rising costs of living, we are now spending our money at an even faster rate.
In order to be more financially stable, it is important to learn how to save your money. Saving allows you to set aside a certain sum of money that you can use in the future. Here are 5 reasons why you should save:
Save for ‘rainy days’
In life, there are bound to be situations we call “financial emergencies”. These are situations where you suddenly need a sum of money. It can come in the form of medical bills, debts you are unable to pay off, or unforeseen circumstances (such as being retrenched or a worldwide pandemic like COVID-19).
Without a saved sum of money, you will be rendered helpless in these situations, and will be scrambling to get enough money. That’s why it’s essential that you have an emergency fund set aside in your personal finances.
Save for your future expenditures
No matter which life stage you are currently at, there are definitely future expenditures that you will need to spend on. This could be smaller purchases in the near future such as the latest mobile phone. It could also be much bigger-ticket items such as buying a house, or even starting a family with your partner.
Did you know that raising a kid in Southeast Asia can be very expensive? In Singapore, you need an estimated sum of S$280,000 to S$560,000 to raise one child. The cost can be up to THB1.57 million and RM400,000 to RM1.1 million in Thailand and Malaysia respectively. Meanwhile in Indonesia, the average cost is IDR 294,000,000.
With these high costs, it is even more important for you to start saving now, so you will be able to afford these expenditures when the time comes.
Save so you can retire earlier
When you have saved enough money for retirement, you will no longer have to work to actively earn money. So the faster you save that amount of money, the faster you can retire!
Retiring would mean that you will no longer have an active income. So if you don’t start saving now, you will need to continue working even when you are much older. In fact, unless you have saved enough money, you will not be able to stop working without someone else giving you financial support. That sounds a little scary, doesn’t it?
Save to have more freedom
With more savings, you will also have more freedom to make the life choices you want.
You feel like going overseas for a holiday? Sure.
You want to spend on items or experiences you love? Go ahead.
You want to have even more money by investing and gaining compound interest? No problem.
You want to help the less fortunate by making a donation? Absolutely!
When you start saving, you can have a less restrictive lifestyle.
Pro Tip!
Save more when you put your money in a place that gives you a higher interest rate. With UOB One Account, you can earn up to 7.8% p.a. interest with just two simple steps. Additionally, enjoy cashback of up to 10% on your daily expenditures!
Save for a peace of mind
Even if you don’t have any big financial goals to work towards, it never hurts to have more money in your bank. With an adequate level of savings, you are generally less worried as you go about your life. No matter what happens, you are financially ready to take it on.
Excited to start saving but not too sure how to do it? Here are some ways you can budget your monthly expenditures, and ensure that a part of your earned income goes into your savings.
