Why individuals must have Personal savings.

[TOZZIBLINKZ]

The concept of saving has been reveal to us long before today. Yet not everyone take the act of saving serious . savings by definition refers to the part of income which is not spent in other words it refers to all or part of income which are not spent immediately but you reserve for future or unforeseen purposes .money which is safe constitute withdrawal from the flow of income yet it can come back into the flow of income through investments .

It is also important to consider the types of savings that we are we have corporate savings which involved two servings kept by companies and other business organisation there and back on saving is profit are high and when taxation is low or for other critical reasons , another type of saving is government saving this refers to the time of saving kept by government of a particular territory they saved through government surplus and many other ways , but for the purpose of this trip we will be considering personal savings which refers to the seven steps by individuals for personal and unforeseen reasons .

There are a couple of reasons why every individual is urged to engage in personal savings , one reason is for the purpose of capital formation , this is so true because in order to raise capital to start business outlet or establishment humans have to save for such idea to be possible. Secondly , individuals are asked to say in order to meet unforeseen an unexpected contingencies such as accommodation problems , retirement , sickness , and retrenchments .

 

[Kendy]

The essence of saving in a personal account should never be undermined or undervalued. Personal savings account is one which an individual chooses to save his money gradually and only him or her have an access to it. It is important to cultivate the habit of savings and not just to spend money lavishly. I know it is easier to spend money than saving it but the vitality of savings should be encouraged. The main essence of saving money is so you can always have an option to fall back on especially in times when you no longer have enough money.

There are different forms of savings which could be in public or private banks and even through apps and also some traditional saving method with the use of piggy banks. Savings too have a disadvantage especially on banks because of incessant deductions and no tangible interest. The essence of saving is not even because of the interest but it is more to have security over the future which could be in terms of; education, health insurance, shelter, donations, for retirement age and for other necessities. Savings should be an intentional act and even the least amount could go a long way in solving a problem.

 

[moonchild]

The benefits of savings are tremendous, because saving is a habit that is cultivated and build over years, saving promotes discipline and helps in making sound financial decisions.

If you think you don't have to save out of that 5000 because it's too small then you'll find it very hard to save 100,000.

If you get impulsive when you have money then you definitely have problem with savings, some people will make sure they spend everything they got at a go, those are the ones that no matter how much they make they would always be broke before the month end, that's just how they are.

But of you're used to savings then you will have no problem saving your extra cash, only buy what's necessary and save the rest in the bank, you don't have to buy a new computer or a new phone or a new anything if the existing has a no faults whatsoever.

There are apps nowadays that are very helpful when it comes to saving, you'll just put your money in there and they will start generating interest for you, I won't mention them because I didn't try them either, but they really look promising.

 

[Kingsley]

It very essential for everyone to have a personal savings, just as we know the basic reasons for hold or saving money include for precautionary purposes, transactionary purposes and speculative purposes. When we say transactionary purpose we are taking about all the things that money can do for us on a daily basis. All the things we do with money in our day to day activities that can help us to keep our body and soul together.

And on precautionary purpose this focuses on those steps we take to avert a negative situation from taken place or should I say to prevent a negative thing from happening, so money is also saved for such purposes. This has to do with steps we take to ensure that we don't get in a financial crisis and start running around for help when a financial situation eventually arises. Somamy people do not take cognizant of this time of savings hence they are easily trapped and they spend their monies more carelessly with reckless abandon.

Then last we also save for speculative purpose, here we may decide to keep some money so that we will use them in the future to buy things that we think we be cheaper in future.