how does saving plays an important role
Answers
Answer:
Explanation:
Saving money can help you become financially secure and provide a safety net in case of an emergency. Here are a few reasons why we save: Emergency cushion - This could be any number of things: a new roof for your house, out-of-pocket medical expenses, or sudden loss of income.
Answer:
The Importance of Saving Money
We save, basically, because we can't predict the future. Saving money can help you become financially secure and provide a safety net in case of an emergency.
Here are a few reasons why we save:
Emergency cushion - This could be any number of things: a new roof for your house, out-of-pocket medical expenses, or sudden loss of income. You will need money set aside for these emergencies to avoid going into debt to pay for your necessities.
Retirement – If you intend to retire someday, you will probably need savings and/or investments to take the place of the income you'll no longer get from your job.
Average Life Expectancy – With more advances in medicine and public health, people are now living longer and needing more money to get by.
Volatility of Social Security – Social Security was never intended to be the primary source of income and should be treated as a supplement to income.
Education - The costs for private and public education are rising every year and it's getting tougher to meet these demands.
Without money put away in savings and/or investments, you open yourself up to other risks as well. For example, not having enough money to pay for emergency dental care may force you into taking a loan that your savings might otherwise have covered.