We are a consumer driver society constantly spending and getting into debt beyond our control. It’s not just working adults, but students and governments alike. The generations before us were savers, but unfortunately this talent is not always passed on to children and grandchildren. The older generation definitely had the right idea about saving, they knew that if they didn’t save, no one would do it for them either, and they knew the risks involved in not saving.
Results in having more debt
The less you save the more likely you are to end up in debt. People who regular save on the other hand, tend to pay with cash and can manage their money well. You take a high risk of getting into debt by not saving a portion of your income every month. It doesn’t have to be much but it will help you to avoid the dreaded debt that piles up due to lack of funds in the bank and unanticipated but necessary purchases.
No emergency fund for rainy days
You don’t know when disaster is going to strike and you’re going to need extra funds. Something breaks down and may need immediate fixing, your car might get a bump or one of your family members or yourself might get sick. We can’t plan these unexpected expenses and emergencies but we can at least try to prepare for them financially by saving. The risk of not saving is that you will be out of pocket and in an uncomfortable situation if an emergency arises, stuck with no where to turn but the banks for a loan.
Lack of security in case of job loss
No money no security, that’s the risk you’re prepared to take if you don’t have any savings or don’t save regularly. Are you certain that you are going to have a job next month let alone next year? Job security is a thing of the past, and no one can tell how long a job will last for. Recent years have shown us that even the biggest billion dollar companies lay people of in difficult times. With no savings you’re left out in the cold.
The inability to make choices
With money in the bank you become a person with choices. If you don’t like your job you can change it without worrying too much as to how the bills are going to be paid during the transition. No savings, well you don’t really have the choice to make the change. If you save regularly you can decide whether to take a holiday, how much to spend and what you can and cannot buy. You’re not as restricted by finances as someone who has decided not to save any of their money.
Health problems related to stress
The major money related health problem is stress. Stress as most people know is a killer and leads to the emergence of other unwanted illnesses. You risk your long term health and sanity when you choose not to save money. If you want to be healthy make sure that you have some money put away for peace of mind.
The risk of not saving money is great. The more you save the happier, healthier and wealthier you’ll be. You’ll also be prepared for those unexpected moments in life where extra cash is need. Don’t take the risk of not saving money because the risks are too great.