Saving refers to the act of setting aside a portion of one's income or resources for future use rather than spending it immediately. It involves withholding consumption in the present to meet anticipated needs or achieve long-term financial goals.
emergency funds: Saving allows individuals to build an emergency fund to cover unexpected expenses or financial emergencies, such as medical bills, car repairs, or job loss.
Financial Security: By setting aside money regularly, individuals can establish a foundation for future financial stability, allowing them to weather economic downturns and achieve their long-term financial goals.
Achieving Goals: Saving enables individuals to work towards and achieve their financial goals, whether short-term (e.g., buying a car, taking a vacation) or long-term (e.g., purchasing a home, funding education, retirement planning).
Opportunity and Flexibility: Saving creates opportunities and flexibility by providing resources to capitalise on investment opportunities, career advancement, or unexpected opportunities that may arise.
The money that you save can then be invested in various ways to grow your wealth.