Should I Save Money Each Month?

There are some people that will save a bit of money regularly each month. This could be for different purposes. They might save money because they want to save up for a specific thing or so they can have some money to fall back on or just because they do not want to spend everything that they earn. You may or may not save money, but it is a good idea to look at the reasons in more detail to see if it might be a good idea to save some each month but also think about the negatives of doing this as well. Then you can decide whether to continue saving, start saving, stop saving or whatever.

Save up for Somethings Specific

Often we might be putting some money aside to save up for something. We might do this to save up for Christmas or for a holiday or something like that. By saving up, we spread the cost and make it much more affordable than it would be, if we tried to pay for it all at once. It also means that we will not need to take out a loan to pay for it, which will make it cheaper. Some people might be saving for something even longer term, perhaps for a car, when they need to replace theirs so they will not need to borrow when the time comes. They may even be saving up for retirement.

Have Money to Fall Back On

Some people like the idea that they have some money to fall back on. They like to think about the fact that if there is an emergency and they suddenly need money, there will be some there to help them. They also like to think about the fact that if something breaks down or they decide they want to treat themselves to something, there will be the money there to help them with that. It can give a feeling of security to know that there is some money there available to use if required.

Not Spend Everything

Some people are just not extravagant and do not want to spend all the money that they earn. If they are lucky enough to be able to afford it, they will buy everything they need, perhaps a few treats and then save the rest as they just do not feel the need to spend it all. We are all different and some people do enjoy spending and want to spend everything that they have, this can very much depend on how much we earn but also what type of person we are.

Reasons why Saving May not be Good

If you have debts then saving money, rather than paying off the debt may not be a good idea. You will make more money paying off the debt than saving, in most cases. This is because debt has high charges and using savings does not cost you very much money apart from the small amount of lost interest. This means that you might be much better using spare money that you have paying off your debt compared with saving it.

There is also some advantage to spending money that you have. If you spend it locally, then you help your local economy and that can help to boost the area that you live in. This can be really advantageous to you in the long run as it will make the area that you live a nicer one and will provide more employment for you, your family that love locally and any local friends and neighbours that you have.

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