Tuesday, March 3, 2009

Saving and its Benefits




By Dan Hughes

Saving money has become quite a difficult concept for most Americans in today's day and age. Most people in the middle- and upper-class like to keep up with the Jones' and don't want to feel like they have fallen behind the times. However, saving money, especially in today's economy, is essential to avoid feeling the consequences of the recession. For most people, saving means putting away part of your monthly income into a saving's account and having that build up over time. Savings, however, can also mean just cutting back on certain expenses that you make. While resisting the urge for weekly expenses, such as eating at a fancy restaurant or changing your brand of coffee, might seem like a decent place to start, you will not see a huge change. It's the big changes that will make the difference; changes such as switching to public schools, not needing to have the house with the great address, or not planning to retire early anymore will increase your saving greatly.

It may take a lot of commitment and sacrifice to reach personal savings goals, but the benefits make up for it significantly. Some benefits besides an increase in your income, will be available money for emergencies, debt prevention, and a plan for the future. In life, there is always uncertainty, and not having the money to cover certain casualties could be catastrophic to your finances. Every person has some debt at some point in his/her life. However, having the necessary funds to be able to pay off the debt will keep you from drowning in debt. Everyone has something they are striving for, and a disciplined savings plan will help you achieve these goals sooner rather than later. 

Creating and maintaining a savings plan is a very important aspect managing one's personal finances. 

No comments:

Post a Comment