Most of us usually spend our youth, along with our time and energy, to explore and experience several different things such as experiencing a job outside of our comfort zone or exploring a new destination. To serve these new and exciting experiences, sometimes we do not mind spending over our financial capability. However, this is one of the reasons why some people usually end up with a low bank account balance at the end of the month. This is also one of the reasons why some people experiencing the lack of money needed for unexpected situations.
Therefore, starting a saving habit is a small action but can bring significant impacts. In addition to the need of saving to protect yourself better, savings is also necessary for many different reasons. Join us in finding out some reasons why you should start saving in the article below.
1/ Save money to protect yourself better during unexpected situations
Imagine what it would be like if an unexpected matter happens and you do not have enough money to deal with it? In these cases, the only solution you can have is probably borrowing money from someone else or getting a loan. It would be fortunate if you can find money to pay off your debt immediately afterwards. However, if another unexpected matter happens while you are still having a debt to handle, this can lead you to a situation where all your debts combined are unaffordable.
As life sometimes can be unpredictable where things can just happen unexpectedly, it is important that you have some money saved for these unexpected matters. These unexpected matters could be illness or damage to certain devices needed for your daily life that requires a fair amount of money to repair. In these cases, if you have a savings amount available, you will be completely proactive in solving these problems instead of having them affect you or people around you.
2/ Save money to balance your life
To give yourself a comfortable lifestyle, one of the very first things you would need to do is to be proactive and dependent in your personal finance. The more you are worried about money, the less calm your mind will be. Your mind can totally focus on your career and enjoying life when you are not worried about money. This is why many people with average income can still have a comfortable life as they know how to spend their money reasonably.
People’s needs for spending are always growing. A lot of people also tend to have a higher spending need when their income increases. A healthy savings habit will help you to balance your life and keep you away from the desire of spending money, even when you have more money to spend.
3/ Save money to make more money
This might sound a bit absurd at first but, in fact, it can totally be possible.
With an available savings amount in hand, you can invest it in different areas and plans you might have such as education, starting a small business, investment in stock, etc. This can help you to earn back a greater amount of money than your original savings amount. Your savings can easily generate profit if you know how to use it effectively. However, to get this done, first you would need a fair savings amount first.
Saving money can be challenging for anyone. However, hopefully the reasons above will motivate you to start building your own saving habits. To improve the efficiency of saving, you can try out different saving methods depending on your habits and desires. Find out if Timo Goal Save and Timo Term Deposit would be suitable saving methods for yourself.
From 5th July 2019, foreign nationals are no longer eligible for Goal Save Accounts as stated in Circular no. 48/2018/TT-NHNN. For Term Deposit Accounts, foreigners with a valid document proving residential status in Vietnam with at least 6 months validity will be eligible to open Term Deposit Accounts with a Term NOT greater than the remaining of its validity. Existing Term Deposits opened before 5th July 2019 will be continued until its maturity.