Life is unpredictable. We all know this. There is no crystal ball that can predict the future for us. As a result, much of life is hinged on out ability to prepare for the unexpected. We should do this in many different areas of our lives. However, it is particularly important when it comes to money. Money is a tool that helps us to survive and maintain a certain standard of living. In fact, there are three important reasons why we should always have a savings to fall back on.
The Loss of Employment
It’s not uncommon for the changing trends in the economy to create financial hardships for many companies. Sometimes, a challenging economy may force a company to let go of some of its workforce. This is commonly known as a layoff. If you become the victim of a layoff things can get pretty scary, especially if you don’t have any money saved. The loss of a job is a direct threat to your way of life. This is why it behooves any and everybody to develop a savings plan. A loss in income is a serious threat to your life if you don’t have money saved to fall back on.
A Big Purchase
There are good reasons to save money as well. If you are a business owner who needs a specialized part like a spray deaerator, you need to have the funds available to make big purchases for your business. However, the reasons don’t stop there. You may want to buy a car or purchase a home, both of which require big down payments. You’ll have the money if you’ve been saving.
An Unexpected Accident
Unfortunately, accidents happen. Sometimes these accidents may make it impossible to live life the way we used to. If we are in a cat accident that leaves us out of commission for six months to a year, we need to have money saved to help cushion our fall. We may not be able to return to work right away and having money daved can give us the peace of mind we need during this tough time.
The reasons for saving money are many. It’s actually a no-brainer. Saving money helps us financially prepare for the future and for unexpected circumstances. It’s an extremely smart way of protecting your way of life. In fact, you could say it’s your life’s insurance policy.