Three reasons why you should make building savings a top priority

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Business

The world in 2020 seems a lot less predictable than it used to be. Even putting the recent death and upheaval caused by coronavirus to one side for a second, our careers and potential to earn money feels far less guaranteed in the modern world.

While our ancestors commonly worked one career all their lives, in the present day, it’s very common for people to work in two to three entirely different sectors throughout their working life. As the use of Artificial Intelligence (AI) and automation continues to increase across all realms of society and business, experts predict workers in the future will need to be ever-more agile, willing and skilled to work different roles. With less and less security in our lives, having a contingency fund sitting behind you is more important than ever. Here are just a few reasons why.

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Having savings gives you freedom and independence

There have been many terrible aspects to coronavirus but one thing it has certainly shown us is the fragility of employment and the importance of having rainy-day money. With millions losing their jobs or moved to reduced furlough payments, many have struggled financially through the virus – and, despite the recent release of vaccines, the end of the turmoil sadly remains a long way off

Having savings can help you ride out the darker moments and can also give you the freedom and independence to seek new employment if things don’t work out in a job. Savings allow you to live your life, on your terms, how and where you please. 

However, if things get particularly tough, it’s worth remembering there are now numerous short-term loans you can take to get you through the tougher times, many of which are taken out against your existing belongings i.e. your car or home. Here’s a blog post on car title loans in Frisco TX and a good example of the type of short-term borrowing you could use rather than committing to long-term debt. Your preference should obviously be to save but we all face moments in life when we need a quick injection of cash to get us through. 

Savings allow you to take calculated risks

We’ve all seen financial booms come and go but some risks are worth taking and having a little set aside can allow you to take calculated gambles without potentially endangering your current standard of living. For example, since a low point in March this year, the value of Bitcoin has surged from just under $5,000 to today’s value slightly above $22,000. Having savings allows to take a punt on stocks and shares, potentially winning big in the long run. 

Savings gives you financial – and life – security

We all have monthly outgoings that we need to meet – rent or mortgage payments, utility bills, loan repayments, etc – and having a contingency fund behind you can give real peace of mind that, even if things go bad, you won’t be at risk of going short or losing your home. Having savings gives you real financial and life security and saves the inevitable worry of coming up short on payments or not being able to afford bills.

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