Importance of saving money

Saving money helps navigate tricky situations, meet financial obligations, and build wealth.

Saving money is vital. It provides financial security and freedom and secures you in a financial emergency. By saving money, you can avoid debt, which relieves stress. However, despite knowing the importance of savings, we often lose sight of it and spend more of our money in the present.

Why is saving money important?

Saving money is vital for many reasons. Some of them include:

Emergencies

Having money set aside for emergencies helps you in a testing situation. An emergency fund provides financial security in times of need. It can help you avoid using credit cards or taking out high-interest loans. Navigating through a financial emergency in good shape serves as a useful reminder of the value of preserving money.

Your child’s education

The cost of education is increasing. Each year, student fees rise, making it more difficult to pay for education without going into debt. It is challenging, but with proper planning and commitment, you can ensure that your children graduate from college debt-free. Having a minor savings account is your best bet, as it is targeted at children.

Marriage

Marriage is an expensive event, but saving money from an early age can help. It is the only way to get the wedding of your dreams, without getting in debt. Some savings account, such as IDFC FIRST Bank’s savings account, offer high interest, which helps you grow your savings at the same time. The importance of a savings account simply cannot be overstated.

Big purchases

Since the goal is to save money rather than spend it, you might not consider that expensive purchases are one of the important reasons for saving money. However, there are a variety of reasons you would wish to save funds to purchase expensive items.

These expenditures could include a new car or household equipment, such as a refrigerator, washer and dryer, or television. However, these larger purchases can be costly. If you do not have the cash up front, you might have to use a credit card, which can be tricky to use. While we may think about them often, big purchases are the reasons savings are important in the long run.

Accumulating wealth

If you want to focus on building wealth, you must save money. When you do so, you develop excellent financial practices and increase your cash reserves. It also helps you invest, which is the only way to build actual long-term wealth.

You might begin by saving money in an interest-bearing bank account. It will allow your money to earn interest. There are different types of savings accounts you can put your money into if your goal is accumulating wealth. You can have a look at what IDFC FIRST Bank offers in terms of savings accounts to get the best rates in the market. You can earn up to 7% per annum and get monthly interest credited to your savings account.

Understanding the importance of savings is necessary today. If you wish to know about accounts that are geared towards savings, such as the minor savings account or the women’s savings account, you can head over to the IDFC FIRST Bank webpage, where you can read up on all the savings accounts available and what they offer. Open a savings account with IDFC FIRST Bank and realise all your savings goals today! You can also reach out to IDFC FIRST customer care on 1800 10 888 to guide you through the account opening process.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.