Listed below are some reasons why saving money is recommended:
1. To build a cash reserve, often referred to as an emergency fund, for financial emergencies such as car repairs and unemployment.
2. For security and peace of mind knowing that you have savings to fall back on, if needed.
3. To purchase "big ticket" household items such as appliances, electronic equipment, new roof, or furniture.
4. To pay for high-cost financial goals such as a new car or a college education for children.
5. To retire comfortably with income provided by withdrawals from retirement savings accounts.
6. To accumulate money to invest in products such as stocks, bonds, and mutual funds.
We would like your feedback on this Personal Finance Frequently Asked Question.
