Introduction

We all know how valuable money is and what important role it plays in each and every one's life. Money is an element and in absence of it, everything seems almost impossible at least in today's era. Earning money itself is so difficult, except in case of those individuals who have an assured job and at the end of every month, cash gets deposited in their respective accounts. Ask its importance to someone who is on daily wages. If that person does not go to work on one particular day and it may be due to ill-health or any personal reason then he may not be able to satisfy his hunger alongside his family's on that day. We all save some money as and when we can, irrespective of whether the saving is done in a bank, in mutual funds or in one's locker. Every month we try to add a tiny bit to the savings and witness its increase in increments. Why do we actually do that? Instead of doing that, we can simply use it to buy trendy clothes, spend it on delicious meals, on vacations etc. What is the reason that we think of saving it rather than spending it as soon as it comes in our hands?  Most of us try to spend our money as cautiously as possible. We spend only on those things which are essential and necessary. If by chance we spend money on articles which we feel were not essential at least for time being then we start feeling that we have wasted our hard earned money. Saving money is very essential. It serves many purposes and the most important ones are listed in this article below.

Top reasons that money needs to be saved

• For safe future and uncertainties

Money that is saved in some form or the other usually brings some kind of pleasure to the saver. We feel good when we know that our money is safe and secure and we can use it as and when required. Savings always take care of future. This is why so many retirement plans have been introduced today. We are earning money now but after our retirement, there will not be any earnings and instead of depending on kids to take care of us financially, we can opt for some savings, starting from today itself i.e., we are teaching ourselves to take care of our future self. If we want to secure our future then saving money is very essential. Money is essential for emergencies. Saved money can be used as an emergency fund. If there are no savings then we might have to run to others to borrow some amount which can be embarrassing to most of us. If money could not be obtained from anywhere then it kind of jeopardizes the whole situation.

• Financial independence

Savings is essential to make us financially independent. Just earning some amount does not completely make us independent. The whole purpose of doing things on our own gets lost if we have to run to others for help in times of needs. We should know to earn as well as save some portion on a regular basis so that our sense of pride does not have to get compromised. Enough savings can help a person to achieve financial independence which can also be termed as financial freedom and it is not related to age but very well associated with money. It can even come at the age of 30 and one does not need to wait until he is 60 to retire. Savings can help a person to retire early as per his wish. If the person has saved enough, spends very little and earns a lot then he can retire way early than all those individuals who need to work even after their retirement. Most of us do not save as we feel during later part of our lives, our kids will look after us financially. It is good if they do so. However, if that does not take place then we will be shattered completely as we have not saved anything. Moreover, it is not right to levy responsibilities and extra burden on kids. Instead, it is better to plan our future in advance, start saving money and invest it in right places so that passive income that is generated will help us remain independent financially, no matter at what age we reach.

•  Decreases stress

Savings reduce stress to a great extent. When we know that we can easily get through next month without much trouble, without even going to work then it is only because we have saved enough. On the other hand, people who have not saved money and all of a sudden loose job or some uncertainty take place then they will be engrossed in lots of stress and anxiety and hardly able to sleep at night as they will be constantly thinking through the ways to get through the monthly bills. Saving money avoids anxiety and the person does not feel suffocated when compared with that individual who is very much dependent on his monthly salary to get through the whole month. For him, the process becomes quite tedious and very suffocating and with that money, he can only fulfill his basic needs and hardly think about fulfilling his secret desires or aims. Savings and investments bring peace of mind to the person where he can easily spend his life on passive income and not think about earning money. Enough saved money will take away all the burdens from the shoulder whereas loans and debts that are taken can levy lots of burdens and result in unnecessary anxiety and stress in the life of an individual.

• Enables control

Saving money will help a person to form control over situations. Suppose his job is wearing him down completely and he cannot continue it then he can bid goodbye to it as he has enough money that will help him to pay his bills before he gets another job. On the other hand, a person with no savings cannot think of quitting his job, even if he is on the verge of having a nervous breakdown. Savings help a person to mend destiny. Since he can easily deal with unfavorable situations or circumstances that are arriving which are related to finances, it will seem to him that he is able to have a control over destiny which may not be possible in case of those individuals who have no savings. Actually, savings help a person to come out on the top as it increases the options in front of him. Savings put to nice use will make money work for us. Initially, we need to work hard and earn money and once we put that money in right places, within no time, it will start working for us. Our life will seem easy even if we can altogether stop working.

• Fulfills desires
  

Savings improve quality of life of an individual. This is because in front of him so many options are spread out and he can choose the best out of all and thus he is able to live a very fulfilling life. This being a materialistic world, we need money for almost all the things and savings help us to live a better lifestyle. Savings help us to accomplish everything that we have always dreamt of. It can be anything either in personal or professional life. Just time isn't enough to accomplish things. Hobbies, passions, desires and all the cravings demand money. In our early years, we let our aims remain unfulfilled due to lack of time and finances. However, if we save enough then we can fulfill all these unfulfilled desires in later part of our lives with the help of our saving funds. Sometimes we miss opportunities and that is because we do not have enough money with us. Savings help us to grab such opportunities with both hands.Saving money even if it is a very small amount is worth the effort. Every time we save some, we can see it growing and all this effort made does not go in vain. It kind of pays off in the end and gives us peace of mind and security.

• Can be gifted to next generation

Savings can very well be passed to the next generations as a gift. Some families have a very bad destiny. We can see each of their generations suffer from financial problems. It is because they do not earn enough and thus do not even think of saving anything. Our savings will not only help us greatly but anything excess can be gifted to the coming generations as a gift so that they can take a lead and do not have to struggle right from the beginning. This will help them to give a kick-start to their dreams and also it will make their project run quite easily.

• Avoids over expenditure

Sometimes saving money will teach us how to avoid ours over expenditure. Buying everything that is necessary is a different thing but buying everything in bulk and buying something that is least needed is a total wastage of money. We will cautiously start buying everything as we want to save money and this habit of ours will teach us to reduce our expenditure which will ultimately help us in long run. We will thereby stop wasting money in various areas which we were doing previously in our lives.

Conclusion

There are many reasons that why we need to save even if it is in a small amount on regular basis. It reduces our stress levels and teaches us to remain prepared for any kind of physical, psychological or emotional stressful circumstance in the life. Saving money helps us to become financially free so that we can take care of ourselves even in our old age and after retirement through our savings funds as this is the time when our active income gets stopped and all we need to depend is on our savings. If savings are good then it gives us the liberty to retire early or stop working for some time to take a break from the ongoing process. It creates lots of opportunities in front of us and we can grab them as and when they arrive. We can limit our over expenditure and can gift our savings to younger generations which will make their process easy and less tedious. Moreover, it will help us to live a good life and improve quality of our life. Saving money makes us feel good and secure as we know that our finances are in our control. It gives us immense pleasure and complete contentment as it keeps our present as well as our future safe and secure.