5 reasons to save
- Handle surprise bills and emergencies – What would you do if the car you drive to work breaks down? Or you get sick and have to take time off work? If you have savings, you can better deal with surprises like these without taking on debtDebt Money that you have borrowed. You must repay the loan, with interest, by a set date.+ read full definition.
- Have more choices – Have you ever considered starting your own business or moving to a new city? Having money set aside can make it easier to make major life changes.
- Reach short-termTerm The period of time that a contract covers. Also, the period of time that an investment pays a set rate of interest.+ read full definition goals – such as buying a home or a car. The more you save toward these goals, the less you’ll have to rely on loans.
- Reach long-term goals – such as a comfortable retirement.
- Help family and loved ones – Do you want to help pay for your kids’ education? Will an aging parent need to live with you one day? Having money saved may help you do these things.
When you first start saving, don’t worry about how much you can put away. The important thing is to get started. Start small, and don’t dip into your savings unless it’s an emergency. You’ll need that money to reach your goals.
3 key points
Saving money can help you:
- Handle unexpected expenses
- Make life changes
- Reach financial goals
Use this calculator to see how even small amounts of money saved add up over time.