Why Save! 

Most of us work nearly everyday to pay our day to day living expenses. We do not have capital(resources which earn income), we trade our labour for money. Money which we use to purchase other goods(tv, laptop, mobile etc.) and services(services of barber’s etc.) which we may require. Now if we rely solely on labour income it requires our active participation. What if some days we are not able to work due to health or other reasons how will we pay our bills. It becomes a very stressful situation if we do not have money. That is why it is wise to keep some of the money from your income/salary for yourself. You may not need that money right now but you can use it in future. If you save regularly even 20% of your monthly income in four months you will have saved enough to pay for your one months expenses assuming you spend the rest 80%. Continue at the same rate for a year and you will have saved up enough for three months worth of expenses. Imagine having a cushion of three months expenses how much more relaxed you will be knowing you are not totally dependent on you labour to pay your bills. 

Where to save! 

Now you can just keep some cash stored away in a jar or a box but you will have to look after it. After all its just paper and vulnerable to variety of things water, termite, theft, fire etc. Then there is the inconvenience of access to this money it is located at a specific location. What if you need it some place else urgently, for such and many other reasons it is advisable to put your money in a bank account. Banks safeguard your money and pay you some interest for depositing your money with them. There is also the added convenience banks offer of ease of transaction and access to your money via there branch networks, cheques, atm/debit cards and electronic transfers etc.

Money saved gives you peace of mind and you do not have to work everyday exchanging your labour for money. Further if you invest that money it generate you income which you do not have to work for.