Why saving money is important

You must have this money saved up or have someone give it to you—and not lend it to you. Savings is what will open the door to owing a home. When you want or need to buy a new car, you will need to have a down payment in order to get a car loan at a reasonable interest rate.

Zero percent financing is reserved for great customers, so a car loan is bound to cost you something—and it could be a lot. The best thing you can do is save up as large a down payment as you can afford, and then consider your options. Maybe buying a quality used car rather than a new one will be what it takes to get you the vehicle you want.

If you ever want to get out of debt, you have to have some money saved. Sounds ironic, doesn't it? Even if you are an awesome planner, stats show that half of us experience at least one totally unexpected expense each year and half of those will be unexpected car trouble.

Then when unexpected things come up, you can pay them out of your reserve fund rather than put them on your credit cards. For more tips on getting out of debt, click here. If you want to have a good, relatively stress-free financial life, you need to save for annual expenses. These may include money for gifts, vacations, vehicle maintenance, minor home repairs, fixing appliances, property taxes and possibly income tax.

It can be tempting to refinance a mortgage to pay off debt or to use a line of credit to pay off high interest credit cards, but it is dangerous to endlessly put expenses on credit without actually paying them off.

The best way to manage these types of expenses is to save for them in advance. This will not only save you money, but it will give you peace of mind. To learn how to budget for annual expenses, click here.

What will you do if your car needs some major repairs? What if your house needs some repairs, or it is discovered that you are living in a building that leaks? It is much better to anticipate a worst case scenario and have some money saved.

Tips for saving money: Save windfall income — Any unexpected money such as income tax return money.

Collect loose change and deposit it in the bank — Use a piggy bank and deposit its contents when its full. Try frugality — Purchase cheaper off brand items and save money. Break a habit — Try doing one less thing you expensive venture a week and apply that money to your savings. Compare costs of major items before purchasing anything — Do your due diligence, shop around before making major purchases. Use coupons — Coupons are a great way to reduce living expenses.

Quick Links Financial Terms. Helpful Links. Become a Facilitator. Take Action. Upcoming Events Budgeting and Saving Workshops. First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.

One of the most important reasons to save is to provide yourself with the freedom to pursue a career you love. In other words, a big pile of savings gives you the freedom to quit a job you hate and pursue your dream career.

And for that reason, saving up a safety net is a really good idea. Think about it — without savings, how will you weather any financial storms? If you lose your job, will you be able to pay your bills? Saving money is important because it provides you with financial security. And the more you save, the more secure you will be. Additionally, many people think you have to make a choice between saving money and having fun, but this is a poisonous mentality.

In fact, fun is a critical part of personal finance, and it is essential for your financial and physical well-being. Truthfully, you should always set a little money aside for enjoyment. And when you have savings, you can do this guilt-free, and without any worry that you are harming your financial future.

Once again, saving money gives you the freedom to do what you want to do. And sometimes that means having a little fun. From a family emergency that requires you to fly across the country, to less emotional emergencies like a broken down car, having a decent amount of money saved up keeps you from adding financial stress to the pile.

Seriously, money is the last thing you need to be worrying about in an emergency. So do your future-self a favor and save up an emergency fund. You see, everybody wants more money, yet very few people work hard to save it up. And, unless you win the lottery—which is beyond unlikely—the only way to have more money is to save it over time. Do you know what happens when you save money wisely and invest intelligently? Your money grows.