You’ve probably heard the phrase “You only live once”. This is often said by people who aren’t really good at saving money. They spend everything they earn and then take out a loan to pay the utility bills or buy groceries before payday. Why save money when you can spend it? Here are the top three reasons why you should always save money.

Reason One: Life is unpredictable

Life is full of surprises and not always pleasant ones. A geopolitical crisis, economy problems, military actions - all this can happen at any moment. What should a person do if - due to economic instability - the company where he works is closed, and he does not have any savings?

You need to prepare for surprises. Many people tend to save money just in case. No one is safe from illness, injury, fraud. If the only breadwinner in the family is left without income, several lives will be at risk at once. If at the same time the family must pay the mortgage and repay other loans the situation will be even more difficult .

The best way to protect yourself from the unpredictability and the unknown is to accumulate a financial safety budget. It allows you to wait out difficult times without borrowing money from a bank or someone.

It is not difficult to accumulate a financial safety budget. You can open a separate savings account and transfer certain amount from each paycheck. The main idea is that the size of the financial safety budget should be able to carry you through at least three months.

Reason Two: Some purchases require preparation

Not everyone can afford to buy an apartment with one salary. Even buying a car is not easy: you also need to save money for a new car. Big goals require preparation. If you regularly set aside small amounts at some point you will be able to save up for a dream.

Set a goal first. What car make do you want to buy? What color should it be? If we are talking about an apartment, in which area do you want to live, in which house, on which floor? How many rooms should the apartment have? The goal must be described in detail - this is necessary in order to understand its final cost. When you find out how much a dream is worth, consider whether you can take out a loan to buy it. Then you will need to save up for the first installment - this is about 20% of the amount. But you can choose not to apply for loans - choose the option that matches your income, time frame and willpower.

Now you can start saving. It is most convenient to save with the bank account that will gain you some interest over time. If you have invested before, you can use bonds to achieve your goal. It is important to buy securities that expire at the same time as your financial goal.

Reason Three: Children also cost money

A child is not only the joy of the family, but also an additional pressure on the budget. Odds are once the child is born one of the parents will take a maternity leave, so the family income will be lower since maternity payments do not exceed the usual salary. You will have to spend a lot on a new family member: the child needs a crib, stroller, bottles, diapers, toys. You need to think about the mandatory expenses for the baby in advance - it is better to save up for these expenses before the maternity leave starts.

If you want to give your child a good education, you will also have to save. Kindergarten, school, university, each of these steps costs money. Once your child grows up you may want to provide him/her with a separate housing - it is worth to start thinking about the down payment on a mortgage while the child is still little.

Overall saving is easier than it looks. Start saving today and you’ll be sure to thank yourself for it in the future.