Why It's So Important to Save
No one can predict the future with certainty. If we could, we would know precisely how much money we would need for the things we want and need in the future. But because we can't do this, it is critically important to save money.
Here are some of the main reason why saving is important:
1. Emergency Cushion. You should save money for emergencies to avoid going into debt to pay for them. This could involve any number of needs: a new roof for the house, unexpected out-of-pocket medical expenses, or a job layoff and sudden loss of income.
2. Retirement. If you intend to retire someday, you'll almost certainly need savings and/or investments to take the place of the income you'll no longer receive from your job.
3. Average life expectancy. With more advances in medicine and public health, people are living longer, and that requires more savings.
4. Volatility of Social Security. Social Security never was intended to be the primary source of retirement income. Instead, you should treat it as a supplemental source of income.
5. Leaving something for your family. Many people hope to leave money to help their children or family members.