Money is what money does. This is a famous statement regarding the functions of money. Money is known for what it does or performs. Money is used as
1.Medium of exchange
2.Medium of payment
3.Measure of value
4.Store of value
5.Standard of deferred payment
Money has is importance and its uses. A person who expends, it becomes equally important that he understands how essential is to save money. Money is not only a practical necessity but is also biblically encouraged.
There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.
There are basically two practical reasons why you need to save money:
1)To build a strong financial foundation.
A strong financial foundation is designed to take the anxiety, pressure and stress out of personal money management. It puts a buffer between you and danger. It removes unnecessary risk from your life. A strong financial foundation is established for those inevitable unexpected negative financial events in life. Surveys show that 75% of all Australians will incur a major negative financial event in their life within the next 10 years.
2)To build a strong financial future.
After you have established a strong financial foundation, you are ready to begin building a strong financial future. Too many Americans are failing to plan for their financial futures.
Savings is possible when one limits his lifestyle or increases his income and manages his expenditure. The need to establish a savings program cannot be over looked.
Only a fool would continue to spend all that he/she makes (and possibly more) and deny the fact that things break, emergencies happen and its hard to get a good paying job when youre old. ...the prudent man looketh well (considers carefully) to his going. Saving money becomes wrong only when it turns into hoarding. Using a monthly budget, living on less than you make and saving money to meet future is what is required.
If saving money does not become a lifestyle, debt will!