Importance of Saving Money for the Future

It is often argued that people need to save more for their future, rather than Suggested change: succumb tosuccumb to1give in to the lure of overspending. I largely agree with this, although saving can sometimes be taken to extremes. The most important reason why it is crucial to save is that it Suggested change: provides individuals withprovides individuals with2gives you a financial buffer should you lose your job, find yourself too ill to work or simply because you are retired. Many people spend everything they earn almost immediately, living hand-to-mouth, meaning that if they fall on hard times, they will have no money to Suggested change: sustain them during emergenciessustain them during emergencies3see them through. Suggested change: It isIt is4It’s also important to save for retirement. Even if you are fortunate enough to live in a country that provides a state pension, it is unlikely to give you a comfortable retirement, so any savings will help you enjoy life in later years. In addition, savings provide people with extra income in the form of interest payments on Suggested change: savings. Althoughsavings. Although5savings Although these may be small, they compound over time, Suggested change: thereby making long-termthereby making long-term6and so long-term savers will be less dependent on earnings from employment. However, I also think it is important not to take saving to an extreme. Some people constantly Suggested change: practice extreme frugalitypractice extreme frugality7scrimp and save, rarely going on holiday or eating out, in order to save every penny. This may be Suggested change: counterproductivecounterproductive8taking things too far, since I think it is important to strike a balance between saving for the future and enjoying the pleasures of life in the present. In conclusion, I strongly believe in the need to save, both to provide a degree of financial security and as an additional source of income. However, that does not mean you should Suggested change: forgoforgo9forego all spending as you also need to enjoy life now.