Money is a huge factor in everyone’s lives. We use it to pay for the groceries that we use to cook meals for ourselves and/or our families. We use it to pay for the clothing that keeps us warm in the wintertime. We use it to pay for the family and friend vacations that help us create memories that last a lifetime. However, something that we also use it for is reliance in a time of need and financial struggle. Money is a valuable resource that allows us to get back up after falling down, similar to a good friend supporting you when going through a tough time emotionally. If one loses a job, money is needed to fall back on to support themselves financially. If one has to pay for college extracurriculars, the extra money will help them not go through any financial damage. If someone loses something valuable and needs to make a purchase of a replacement, they should have money to help them do so. All these examples describe different potential circumstances that one may be in and that they need money to get out of, but what needs to be known is how to make sure that extra cash is there in the first place.
So, how much money should you save? The answer to this question typically varies from person to person, depending largely on their living situation and who else they may depend on financially, such as parents, guardians, etc. However, a good amount of money that will provide support for four to six months should be an adequate goal. It is important to remember that when one is putting together this money, it does not mean that one needs to take out a large chunk of six months’ worth of money and save it. Rather, small portions of money should be added to your savings each time. This sort of budgeting will add up in the long run, making a much smaller impact on your current money status for spending and a larger impact on your savings over time. However, if one’s financial status increases, such as a job promotion leading to an increase in salary, one can make the choice of either changing the amount they put in their savings or they can spend more money and still only continue to save the same amount of money as prior to the increase in their salary.
It is also important to know how valuable these savings can be, which means that they should not be used for situations for which it is not needed. Avoiding the temptation to use this money to purchase something that is not a real emergency should be maintained. If this sort of manner goes out of practice, it will not only result in a loss of money, but also an increase in potential future risk. It is not known what will happen to your current incoming salary, such as getting a lower salary due to your company’s possible financial issues or being fired and having no income. In this sort of situation, money will not be added to the savings, but rather taken away since it will be used for these kinds of emergency situations. This further shows why money should not be taken away from the savings as it is not known when you can no longer add to it.
Although money is a materialistic concept to many, it is also connected to our well-being as well. Similar to getting support from people, money allows us to prosper in times of need when emotional support is not enough. Many always think that they can start saving money tomorrow or another time down the road, but it is crucial to know that future money is not the only thing being lost here, but also the chance to help your future self in a time of need.
