Having some money left over that you can use in times of strive is essential. But all the latest financial figures show that people are saving less and less. For many people, this will be because they simply can’t afford to save away as much money as they would like to. But for others, it’s a choice that they make in order to fund their lifestyles. If you ask me, saving as much money as you can to keep you on the right path is absolutely essential. If you fail to do it, you might regret it later. Having said that, saving is not easy, so how can it be done?
For a start, you should try to cut down on your spending. This can be done by choosing cheaper alternatives to the things you buy regularly. Or doing less of the things that are expensive but not essential. Everyone is different, so you will have to judge for yourself how you’re going to spend less and save more. But if you’re still not convinced of the importance of saving money for the future, it might be a good idea to think about occasions when having savings can save your skin. Here are 10 examples of that, so read on to learn more.
1. Holiday Season Headaches
Over the Christmas season, there is so much that needs to be paid for. All those gifts and nights out are not going to pay for themselves. If you’re the kind of person who just about scrapes through at other times of the year, the holiday season can be a real financial struggle.
It can be a great idea to start saving money in January and do this throughout the year. The money you save can then be used to make your holiday season more enjoyable and slightly less financially ruinous.
2. An Unexpected Job Loss
Losing your job is one of the most stressful and unpleasant things you will ever experience. No one wants to have to go through this, but sometimes, there is nothing that can be done about it. When you unexpectedly lose your job, your income is suddenly gone and you need to cover the basic costs of life.
If you have amassed some savings, these might be enough to keep you moving on the right track until you get back on your feet and find a new job. It can be the perfect short-term fix, and it’ll mean that you don’t have to borrow any money, which might put you in even more financial trouble.
3. Big Bills
There are some occasions in which you are handed bigger bills than you had expected. That’s just the way it is sometimes. To make sure that these bills don’t sink you and destroy your finances, you should make sure that you have some form of backup. When that’s the case, you can get back to normal and start living care free again.
This is a problem that many people experience at the end of winter. During those cold months, you spend most of your time indoors, and you obviously using the heating system more than normal. It’s easy to push that kind of thing out of your mind until later when the bill falls through the letterbox. And when that happens, your savings could save you.
4. Short-Term Cash Flow Problems
Cash flow is one of those things that can be hard to predict and manage for some people. If your income is not consistent, and it changes from month to month, there might be months when you are left with less than usual. This might then make it difficult for you to cover your bills and other monthly obligations. No one wants to find themselves in this kind of situation, but it happens.
To get around this problem you need to have a safety net in place. This means saving some money, putting it to one side and using it to tide you over when you have short-term cash flow problems that are making your life difficult.
5. When Your Trusty Vehicle Finally Breaks Down
Most of us rely on our car to get around each day. Without it, you might not be able to get to work or take your kids to school on time. But if you have been driving an old car that’s seen better days for a long time, the day will eventually come when that car suddenly decides to stop working for you. This is the way it goes, and you’ll then have to buy another.
Spending money on a new car is never much fun. Yes, it’s nice to have a new vehicle. But what’s not nice is the huge bill that comes with it. But if you have some savings that you could use to make that financial blow a little softer, you’d find the whole situation a bit easier to deal with.
6. Natural Disasters Not Covered by Insurance
Natural disasters occur in all kinds of contexts. Sometimes, you can be aware of the threats you face as a result of being located in a particular location. For example, the house you live in could be situated on flood plains. Or the area where you live might be famous for getting it by hurricanes every few years. If that’s the case, you can get insurance that covers you.
But what if you are not expecting the natural disaster that hits your home? What do you do then? This is not easy to answer but it might result in you having to pay out a lot of money for repairs to your home when something like this does happen. Without the right cover, you will have no other option. And having savings will really help.
7. When You Get Injured and Can’t Work
Injuries at work only happen to other people, right? Well, that’s the kind of attitude that many people have. But it would be a big mistake to assume that you are immune to these kinds of problems. It doesn’t really matter what kind of job you do; you can still get injured at work if something goes wrong unexpectedly.
When this kind of thing happens, you could be off work for a long time if the injury is serious. Yes, you could find a personal injury attorney and try to get compensation. But your life will be much easier if you also have some savings to fall back on that can tide you over while you recover and get back on your feet and back to work.
8. Vital Home Appliance Failures
We’ve all been there before. You have an appliance in the home that you rely on every day. And then it suddenly breaks down when you want it to work for you most of all. Maybe the boiler stops working in winter or the air conditioner breaks down at the peak of summer. Unless you have money within reach to fix these problems, they won’t go away.
You’ll wish you did have money at hand when you start to realise that your life will be less comfortable or less convenient as a result of your broken appliance. It’s easy to ignore these potential problems until they actually hit you, but you shouldn’t let that happen.
9. When Your Grown Up Kids Need Bailing Out
If you have children, they will grow up and move on in life before long. Their childhoods will pass you by quickly. But that doesn’t necessarily mean that they will never need your help or support again. When they are first finding their feet in the adult world, there is every chance that they will need you to bail them out.
It’s pretty common for young adults to experience financial difficulties in life. They won’t yet have the experience of living alone and balancing their budgets. So, if they do face financial problems, you need to be there to offer them a helping hand. If you have some money saved away that allows you to do that, it will be good for everyone.
10. The Day You Retire
Entering retirement is a huge milestone for anyone. But if you’re trying to do this without the backup of a good pension and adequate savings, it can be something that is more daunting than worthy of celebration. It’s worth setting up a separate savings pot that will allow you to save for the day when you do retire. You when won’t be tempted to dip into it sooner.
The great thing about saving for your retirement is that you have a long time to prepare for it. So, even if you only save a very small amount of money each month, you will be able to amass a considerable sum by the time that you actually retire. It’s never too early or too late to start saving your retirement, so ensure you do it.
If these 10 examples of times when you might need a bit of extra money haven’t convinced you to start saving, nothing will. Stop hanging around and start saving now.