Saving money is one of the most important things you can do for yourself and your family. It doesn't matter how old you are, saving money needs to be a priority. You never can tell when something unforeseen will happen.
A common mistake people make is not thinking of the future. Things may be going great now, but down the road could be a different story. This is true at any age. Young people are not immune to a run of bad luck or health problems.
"Bad things happen"
A car accident can be very costly: car repairs, medical bills and higher insurance rates. If you don't have anything in savings, the aftermath of a car accident can become an awful financial burden. Many accident victims cannot afford the car repairs. They are forced to either drive the damaged vehicle or try to get a different vehicle.
Insurance rates are high enough, after an accident they can skyrocket even higher. You can't go without insurance, so you are forced to pay the higher rate. This is an unfair burden, especially if the accident was not your fault.
Just the thought of medical bills makes most people cringe. Even if you have good health insurance, you still have out of pocket expense. At the very least, you have to pay your health insurance premiums. After an accident, most of those premiums go up also. With money in a savings account, an accident can be less stressful financially.
Car accidents are just one example of the bad things that can happen. Others include natural disasters like floods and tornadoes, a break-in, loss of a job and repairs. Breakdowns are not limited to vehicles. Household appliances can quit, the roof may start leaking or you can have plumbing issues. There are numerous things that can go wrong unexpectedly.
No one likes to think about the possibility of their health failing or the development of a condition. Health problems can happen to young and older people alike. You can slip on an icy patch and break your ankle or arm, or miss a step and tumble down a staircase. One never knows when a common cold can turn into something more serious, requiring medication or even a hospital stay.
It is always a good idea to have health insurance. However, many insurance companies only pay a portion of medical treatment. You are stuck with the remaining balance. Most companies require you to pay a deductible (amount you pay out of pocket) of a certain amount before they will start covering anything.
The worst part about financial trouble is the emotional stress. This can come in the form of an accident, medical diagnosis or loss of a job. No one wants to see their loved one in pain and suffering in any way. However, the bills keep coming regardless of the situation.
If you are single, it can be even worse. Single people don't have anyone to rely on. In either scenario, bills start piling up and the stress mounts. If you have money in savings, you have a little peace of mind knowing part of the financial burden is covered. This allows you to concentrate on taking care of yourself and your family's emotional needs. These are not the times people need to be worrying about money issues.
Life can toss a number of different obstacles in your way. The loss of job, sudden medical bills or a tornado can devastate anyone. It is these possibilities that make saving money so very important.
Saving money is not an age-appropriate activity. There is no set age to be smart and save for the future.You are never too old or too young to be prepared for things life can throw your way.