Why is it Good to Save Money?

While our grandparent made a habit from saving a few dollars every month, today we almost completely forgot about this useful practice, and this is true for both poor and wealthy people. The Pew Research Center's Social & Demographic Trends project showed in 2008 that 75 percent of American adults say they don't save enough.

The Consumer Federation of America reported last year that less than half of Americans have savings accounts. Of those who do save money, one-third has less than $2,000 set aside for unforeseen expenses. Wealthier homes save more than poor ones, but overall the saving habits of Americans look like in the times of the Great Depression.

If your goal is to build a fortune, saving money is the first step of a long journey. If you live up all your money every month, you have nothing to build on. Poor economical climate also motivates people to save: people are trying to survive, and expect for the worst, so they try to set aside as much as they can.

You should be saving no matter how economy is doing, because no one can know how today circumstances will be changed tomorrow. One's life can have major changes suddenly, with unexpected expenses, which can bring you in debt if you don't have some cash in a saving account.

Your car can broke down suddenly, and need some serious repairs that can overthrow your monthly budget. Or you may be involved in an accident, and even if your insurance covers most of the damage, you will have to pay the deductible. There are other possible unexpected expenses: you may have to repair your roof after a severe storm, your computer can broke down and need to be replaced, or you can get ill and have to pay for the doctor visits.

You can have to make an unexpected trip to your parents, or maybe a pet needs to be taken to a vet. There is no guarantee the utilities, insurance, service rates you are paying will not change suddenly. And even if nothing happens to you, your family may have unexpected expenses and need your help.

It is always better to have some money tucked away in a bank account that you don't need, than not having any money when you need it. If you don't use your savings, there will be plenty occasions when it will come handy, like weddings, or graduations.