Five Important Reasons for Saving Money

Money is one of the most important things in the world today. Some people have more than they need, while others struggle to have enough. However, both the former and the latter nurture thoughts that they need to save. The question that readily comes to mind is “why should we save?”.  Or to put it differently, why do people economise their resources even when they have enough money to pay for their bills? This article will respond to these rhetorical questions.

There are many reasons why people choose to save part of their earnings, and these reasons vary from one individual to another. It could be to avoid future financial difficulties, or for investment purposes, but whatever reason it may be, the habit of saving will provide a cushion against unforeseen circumstances.  Assessed and discussed below are five main reasons why you should save.

Why is Saving Money Important?

In case of emergencies: Occasionally in life, unforeseen events happen, and bills such as medical expenses, urgent car maintenance, or sudden and unexpected unemployment may occur. These are unpredicted circumstances and whether they happen or not, having funds in reserve for them just in case, gives an individual some relief. This explains in part why companies who lay off their workers provide redundancy payments to support the newly exited individuals. However, individuals who have saved enough money for emergency reasons will have a decent pool of funds to plan, set up a business, or spend their savings reasonably while searching for new employment opportunities.

Retirement: Another important reason for saving money is to have a better life after retirement. The more money an individual can save before retiring, the fewer troubles they will face financially. A special retirement account, for example, is often used for retirement savings. Money invested in this special account can earn interest and increase its value over time. The higher the interest, the faster the money grows.

Maximising Interest Rates: Effective saving depends on where you save. It is therefore advisable to use a regular savings account and a Neo Bank, as well as buying bonds or stocks for savings. You can also adopt a high-yield savings account which guarantees a higher return on your money saved over time. Perhaps you also have a credit card joined with your account, the interest rate will increase simultaneously with the credit card rates.

Education: You should never neglect the importance of saving for education, either for yourself or anyone in your family. Education is said to be the best investment one can have for the future. Continued education places an individual above the average qualification level and increases the chance of earning, as well as saving more.

Vacations or Big Purchases: The dream of most people, if not everyone, is to have a fun-filled life, and this can be achieved if you save for it. With your savings, you can go on a vacation, giving yourself a special treat. The type of vacation and the quality of enjoyment depends on how much has been saved and the location. A car may also be purchased to upgrade your standard of living.  

Depending on saving plans, an individual can decide to take a loan and pay back by instalments at an affordable interest rate.  However, it is not advisable to take a loan if the main earnings cannot cover both the capital and the interest.


The bottom line is that regardless of the goal that you want to achieve with savings, it is very important to always save a proportion of your earnings. To this end, there are many genuine investment apps, for example, Astralis, that will help you grow your money as you save. Astralis is a modern-day savings account with elements of cryptocurrency investment and a guarantee for maximum returns. It is better to save money than regret not having it when the need for it arises, as earning without saving implies that you are spending all your earnings without a plan.

About the Author

Adhithyan Sundar
Head Of Marketing

Making sure we get the attention, our marketing genius ensures Astralis is growing its audience by portraying our message to the world