subject: On Savings And The Feeling Of Financial Security [print this page] Remember when your parents would always tell you to set aside a portion of your allowance as savings? At the time, they probably insisted that the reason why you needed to have savings was for you to have money in case of emergencies.
Now that you are older, you may have already realized that your parents were right. As an adult, encountering some sort of financial difficulty is not an unusual thing. Whats worse is that emergencies seem to happen during the times when you dont have enough money.
One of the root problems of financial difficulty is spending more than what you are earning. Some people do not really make it their goal to set aside a portion of their income. Instead, they spend it all buying the things they want and not necessarily need. There is no question about spending money on basic needs like food, house or apartment, and clothes, but spending money on luxury items is just impractical.
When money runs out, the most common resort that people run to is borrowing from family, friends, and even banks or companies that give out loans. From seeking financial help from family, friends and employer to applying for cash advance loans, people can be creative in looking for money. This creativity heightens when the bills start to come in or emergencies suddenly show up.
A momentary feeling of financial security may come when you have already acquired the needed money from family, friends, employer or from the cash advance loans that you applied for. Unfortunately, if not handled properly, it can become a source of headache because you will be obliged to pay them back eventually, with interest. When the time for payment comes, the money in your pocket will have to go, and youre back with the same old problems.
What your parents used to say when you were young is definitely correct. Savings will always beat cash advance loans and other loans we may acquire that provide temporary financial security. Savings are stable, something that we can definitely depend on at the most crucial of times.
