Savings Culture (1)

 

Saving a certain percentage of no matter how little you have reduces your risk of going out of funds. Adopting a saving culture is very important and should be an utmost priority. A saving culture should be consistent, it should be a habit. Most times you wait till the need arises before you adopt a “temporary saving culture”- Saving only when the need arises and stop after meeting the target.

Adopting a saving culture shouldn’t be an option, when it’s convenient or not. It should be a necessity, the consistent need to save as much as possible.

It is almost impossible to adopt a saving culture without balancing your spending and savings. No matter how exhaustive your needs are, always try to minimize the cost in the most effective way possible. Be disciplined and cut unnecessary expenses. Remember saving is all about setting priorities and having a plan.

7 Reasons why You Should Adopt A Saving Culture

Why should I save?

As a person, savings are a safety net that you should have as a part of planning. More so as a Nigerian, adopting a saving culture is key and should be inculcated in our life to save us from a lot of unforeseen contingencies that our country brings our way. You may ask “why should I save? “. The question is “why shouldn’t you?”. Here are some very important reasons why you should save;

Get out of debt: Savings are a great way to way to get out of whatever debt you may have incurred in the past. It could be that you took a loan to go to school or to finance something. Savings will help you offset such debt that you have incurred.

Become financially independent: Being financially independent does not come from just working and earning a salary. To be financially independent, savings play a great role. Money kept in savings account overtime can give you an extra push when you most need it. Remember financial independence is the goal

Buy a home: Planning for the future without having savings us an error. Imagine having to pay rent on property for the rest offices your life when savings can help put you in a great position to own your own property and be rent free. When you are rent free, the money that you could have used to pay rent is ready to serve another purpose.

To go on a vacation: All work and no play makes you a very dull person. Who doesn’t love to travel, to relax and just generally take time off work to have fun. Most people don’t realize the importance of a vacation and often complain about the lack of funds whenever the issue is talked about. However, there is a simple solution to that problem, savings. Savings help a lot when its time to take that much needed break.

To take care of big purchases: From buying a car to furnishing your house or getting those gadgets that you’ve had your eye on for a while, these big purchases have a way of sneaking into the life of the financially unprepared. Savings saves you from being financially unprepared. Paying in installments only makes you pay more money to be paid instead of the actual price of whatever you bought.

For life’s big events: Life is in stages and certain stages begin with big events and these events can get a bit expensive. Weddings and childbirth readily come to mind when thinking about big events; burials of the elderly and aged also come to mind. So it’s very important to save them so you don’t get caught in a web of debt trying to have a big event.

For the next generation: Saving for the next generation is a great way to reduce the stress of life as helping them getting settled early in life will greatly help you in too. Having an education fund set up for your children the minute you get to know that you are expecting puts you in a position to breeze through the period without worries.