The future's uncertain and being financially prepared for the future is one of the most prudent decisions to take in life. You never know what may happen tomorrow, and therefore it's important to be prepared for any uncertainty at all times. In India, since our childhood, we have been taught the importance of saving money. We have observed our parents and grandparents investing for the future and have also reaped the benefits through securing a good education and being able to spend on marriage, vacations and more. Investing money supports you in your old age and allows you to be financially independent. Thus, instead of immediately spending your hard earned money, stop for a second and think about how you can save your money to gain benefits in the long run.
Here are 8 reasons why you should save your money and invest for the future:
- Helps you in emergency situations:
Emergency situations may arise at any point of time in our lives without any warning signs. You may suddenly lose your job, or may have to shell out huge amounts of money to meet unforeseen medical expenses. Today, even spending a week at a hospital comes with huge expenses. And if you’re looking at long term treatments such as cancer or dialysis, you’re looking at prolonged medical expenses for years to come. Investing for the future earlier on in your life and finding smart ways to save your money helps you deal with these financially stressful situations later on in life. You won’t have to unnecessarily borrow money from people or banks where you’ll inadvertently end up paying high interest too.
- You will eventually stop earning one day:
As simple and straightforward as this point is, many people don't realise that they are not going to earn forever. If you are in a corporate job, there is a high probability that you will be asked to retire at 60-65. Even after you retire, your expenses will still continue to soar, especially if you want to send your kids to graduate school or get them married. You also require money to meet your daily expenses such as food, transport and shelter. Investments come in handy at times like these where you will have a constant inflow of money even if you decide to retire.
- To feel financially secure and get some peace of mind:
Not having enough money in the bank comes with a feeling of dread, fear and anxiety. An empty bank account is never a good sign. It's really hard to sleep at night knowing that you don’t have enough money to meet future needs. There may be days where you are burdened with medical expenses, you want to take your family on an international holiday or want to quit your job and venture out on your own. Without savings, none of these can happen. Saving money for the future goes a long way in providing you the much needed peace of mind and financial security during emergencies , when you see a big expense coming your way in the future.
- To avoid taking more loans:
A debt trap is a dangerous situation that you absolutely need to stay out of, if possible. How does a debt cycle start? You start off by taking a small personal loan, and then when you’re unable to pay back this loan, you take another loan to pay your prior dues. Then you take another loan to clear this loan! And if you’ve been borrowing money from untrustworthy people or loan sharks, the inflated interest rates itself will drown you in a sea of financial trouble. One of the root causes of falling into a debt trap is not saving for the future. Saving your money enables you to avoid vicious debt cycles and allows you to invest in a lucrative, financially secure future.
- To meet large expenditures:
Do you dream of buying a house or purchasing your dream car? Most of us do, because these are aspirations most of us have in our lives. After all, having a roof over our heads especially during the lockdown helped us survive and stay close with our families and loved ones. Today, with a rise in safety measures fueled by the pandemic, owning a car is far more safer than using public transportation. Thus, save your money to meet these large expenses such as buying a home, buying a car or renovating your home is crucial to your long term investment plans. Yes, most people do take a loan to buy a house, but you will be given a loan only based on your credit score which is largely dependent on your ability to save for the future wisely and be financially prudent.
- For your children’s future:
Your kids are gonna grow up someday and they too will have aspirations of going to their dream university, whether at home or outside the country. Graduate education costs a lot of money today. And it's absolutely heartbreaking for any parent to not be able to fulfil their child’s dreams. Both education and marriage require a significant amount of money, which you can acquire only through years of saving money smartly. Investing for the future in the right sources and having a diversified investment portfolio will immensely help you during these important times that determine your child’s future. So, it's always good to start saving for the future, isn’t it?
These are 6 reasons why saving and investing for the future is extremely important for your future. Yet, in spite of being financially responsible, many of us have faced situations where we require immediate financial assistance. And during these situations, it becomes imperative to take a loan. However, there’s no need to worry as long as you take a loan that is safe and offers a low interest rate, so that you don’t fall into a debt trap, as discussed above. A gold loan is a great option which has a relatively low interest rate since it is a secured loan when compared to a personal loan that comes with high interest rates to make up for the lack of surety.
Rupeek is one such online gold loan provider that provides you an instant gold loan during times of need. All you need to do is place a request on the Rupeek app after finding out the value of your gold through Rupeek’s gold loan calculator. Rupeek’s highly trained gold loan personnel will come to your house and do the gold appraisal and personal loan transfer right in front of you. Once they verify your KYC documents, Rupeek will directly transfer the amount to your account. Be rest assured that your gold will be safely protected in trusted partner bank vaults. You can pay back comfortably through low-interest EMI options over flexible time periods.
Saving your money is extremely important to secure your future, but when you require instant low interest loans, look no further than Rupeek!