Saving is an attitude of the person keeping extra money before or after expenses. It is very important and needs to be a priority in life. However, most of the financial expert suggests that savings must be done before expenses and includes in the personal budgeting. Life is unpredictable, maybe a sudden car repair, the stove that stops working, or a medical emergency could occur. This fact was clearly defined by Merriam-Webster website dictionary that saving is, “preservation from danger or destruction” and “the excess of income over consumption expenditures”. With this definition, saving builds discipline in a person on about their financial matters, which gives a positive effect on everybody’s lifestyles. The interesting part of saving money can provide a safety net for all the unexpected events or emergencies and make life happy. Therefore, it is better to save money for a rainy day than spending it now.
The main reason for saving for a rainy day is giving everyone a worry-free life in terms of unexpected life events and sudden expenses. According to Lloyds Bank head of savings Mark Rawcliffe, habitual savings provide an “ease financial worries and reduce stress” (qtd. in Hannah). This idea sounds true: any personal projects like car repair or a new roof for the house need savings to directly solve these issues. For medical emergencies, especially if needing urgent treatment, the need for money is surely important. The budget for the treatment can be funded by the available savings. If savings are consistent, a person can cover all this cost without going into debt, using credit, or getting a loan. Spending today to satisfy and enjoy life in a reasonable way is fine because people say life is too short to deprive one’s self of all life’s wants and experiences. Still, the most important thing is balancing current expenses with the ability to finance realistically everything, especially unexpected life expenses, through savings. Nobody knows during spending without controls that some expenses might happen and savings are not available, so worse situations arise. Saving is worthy because the joy of being prepared and not worrying is the biggest achievement in life.
Another reason for saving for a rainy day is giving everybody a financial back-up for many life plans and goals. The family member planning for a wedding needs a lot of preparations, especially financing the ceremonies of these life events. Similarly, a child going for a college education needs tuition, books, dorm stuff and a lot more. These kinds of life plans and goals are easier and will surely materialize if savings are available before all these events happen. The cash reserves from saving can be also a big help in starting a business by funding the initial capital. Without ample savings, the plan for making a business will never happen. Joe Morrin asserts in his article “having a plan and being diligent in your approach to savings…provides a sense of accomplishment”. The personal savings that have been arranged before can make these plans and goals happen. Lavish traveling in many places while young is a must because of social pressures. At the same time, this plan of excessive vacations will remain just a plan if the budget is not available. A huge savings is a must to make this traveling goal a reality and give the person a sort of happiness in seeing many places during a vacation tour. If spending is always uncontrolled, these life plans will never materialize. The availability of reserve funds by saving makes all the plans feasible and results in self-fulfillment.
The last reason for saving for a rainy day is giving everyone a comfortable and abundant retirement. The earlier the person starts to save, the more the retirement money grows, and everyone is aware of this fact. Putting a small amount consistently in savings every month can earn interest over the long period of term, and this idea should be a good habit to acquire while younger and earning more. A good example of this is the state pension which surely will provide enough income in the future to cover all costs. Also, a lot of saving investment provides a maximum advantage during employment, and a good example of this is the 401-K enrollment which gives an employee a perk of more savings from the company’s shares. Another good idea is the money refunded from a yearly tax refund. Invest in mutual funds or any stocks that grow their value instead of spending it or keeping it in a regular bank account which earns very small interest. During the younger years, saving for retirement can provide a kind of life satisfaction because a person has a sense of security for the future. Sam Dogen personally supports this idea because “savings gives people peace of mind, pride, and independence”. Savings during younger years will give happy retirement days of which everybody is dreaming. Spending during younger years is normal because everybody wants to enjoy life to the fullest while young or try to treat themselves with all their hard-earned money. However, there should also be a portion of savings for getting older which gives a sense of life achievements and self of responsibility while young.
The consistency of saving for retirement is a good practice in life for having a better life and happy retirement.
The rationale of the concept of saving money for the rainy day is necessary for everyone’s life, because it permits a future without worries which saves a person from all unexpected expenses. Saving money creates stability in living with a less stressful life and the result of happiness. Most of the unexpected occurrences can be easily managed with this concept of saving. A person can make all the plans and goals in life happen and provide a sense of happiness and realization in life. In the end, the attainment of all goals creates happiness, makes a quality of life and gives a sense of financial security. Most of all, a comfortable and happy retiring in the future with an abundant living from all savings can make a person feel content. An absence of fear of going broke during retirement is the best feeling of all. It is better to have money for what may happen in life than spending it now on what a person wants. Encouraging everyone to start saving money for a rainy day is essential because the saved money can affect a lot of things in the human’s life. The idea of saving is an important tool to initiate the simple solutions to life’s problems. This creates motivation for everyone to enjoy and have a meaningful life. Saving will cover tomorrow’s expenses and provide a restful sleep with nothing to worry about the next day expenses. Also, might be an ingredient for a happy relationship because everyone gets satisfaction in the effects of it. Savings can keep everybody healthy because providing health care is possible if the financial level of everyone is enough. Having money saved up increase the sense of well-being in life. People who save regularly feel better about themselves because saving gives one’s self the confidence to face the future, gives everyone’s peace of mind, makes the person feel proud about themselves, and gives them a sense of independence.