Saving is a short-term way to plan for a purchase. It’s one of the best ways to prepare for emergencies, unexpected expenses or buying something without having to use credit.
- Is short-term: From the time you start saving until you spend the money is usually 6-24 months.
- Stops you from spending: Don’t think of saving as putting away money that you will never use. Saving is money you put away NOW to spend LATER.
- Gives you security: Using savings accounts is less risky than hiding the money under the mattress or in the freezer. Banks and credit cooperatives usually have insurance so that you know your money is safe.
Why is saving important?
Saving is important because having extra money (whatever the amount) brings you peace of mind and the ability to pay for things without using credit.
Start Saving Now.
- Even if you think you can’t afford it.
- Even if it is only a little out of each pay check.