Savings is so important to our lives but many of us seem to ignore it perhaps because we don’t know how far savings can go to save us from unforeseen issues.
Your saving habit says a lot about you and if your saving habit is a very poor one, when people talk about the relationship between lack of money and stress, you should be able to relate.
Here are 3 types of savings you need to start putting into practice if you are not doing so already.
1. Emergency Savings
Have you ever thought of saving because of unexpected issues? This form of saving is a fantastic backup plan. Instead of plunging yourself into debt or selling your properties due to unexpected financial issues such as long-term illness and job loss, emergency savings helps you to take care of these and prevent you from being in debt.
2. Retirement savings
If you want to retire at the age of 50 and live a comfortable life afterwards, you should dedicate an account for your retirement days even now that you are probably in your 20s.
3. Personal Savings
Personal savings is the money you put aside for your near future, after taking out your monthly expense.
To be prudent in your financial life, this 3 forms of savings should be effectively put into practice.