5 simple reasons to save your salary every month
- It is kind of embarrassing to still be taking money from home even though you earn a fat pay cheque
- Window-shopping car, bikes, gadgets can actually turn into possessions if you set yourself a goal of buying it
Reason 1: Empower yourself. Be independent
The feeling of shopping/spending with your first salary or hard earned money is unparalleled. Imagine getting all that without having to ask or depend upon on anyone. It can only be possible if you learn to save. It is also kind of embarrassing to still be taking money from home even though you earn a fat pay cheque, speaks of our poor financial management. Don't be lazy. Start now.
Reason 2: Set yourself a target
Window-shopping car, bikes, gadgets can actually turn into possessions if you set yourself a goal of buying it. Like you saved your birthday money when you were kids to buy that candy or wrestling card, now also save part of your salary to get your dream home and if you set aside money wisely, you may even be able to buy an extra thing or two. Plus loans can be pretty expensive.
Reason 3: See long-term benefits
It is a very crude example but consider this - Parents begin to save for their children's college funds even as their child is navigating kindergarten because they expect circumstances and expenses not to be the same as it is currently. So too, one must learn to save for their retirement as early as possible, and retiring from a job does not mean at the age of 60, with enough money stashed safely you can enjoy an early retirement (read 40 years)
Reason 4: Save for emergencies
This point cannot be emphasised enough. Emergencies happen without prior intimation and it is a bad space to be in if you are short of cash or rather penniless in this scenario. It will happen if you are one of those who blow off their salary within the first 15 days of payment. A medical emergency in the family, a vehicle breakdown or an appliance malfunctions in the house, a sudden requirement for work or studies warrants cash and having an emergency fund will come in handy here.
Reason 5: Save to always be secure against monetary fluctuations
These points in no way says that you must not spend on a weekend party or buy your favourite dress, all we say is that having something to fall upon is always a good backup plan. See when demonetisation set in, you know what you went through waiting in lines for withdrawing money etc..Also the monster called inflation can strike at any time. A public transport strike can render essentials extremely expensive or a natural disaster change the market conditions. This is when your savings can see you through.