That's why saving is important
Forty percent of the Dutch do not save. A broken washing machine is therefore not a washing machine. Taking part in an alcohol break means enjoying not only physical, but also financial benefits. You can spend that money saved on all sorts of fun things. But you can also save it. Because saving is important.
Savings give financial peace of mind
Worrying about money is terrible. Having a good buffer on hand ensures peace of mind. In this way, a financial setback (hey, your laptop no longer works) does not immediately throw you off balance. Try to save a fixed amount every month. Preferably by means of an automatic transfer. Then you don't have to think about it yourself.
Making big expenses
Everyone has to make several major expenses in their life. If it's not a new refrigerator, it is replacing your old shed with a new one. Or what about that new house? Talk about big expenses. Big expenses are obviously different for everyone, but the feeling is universal. 'Swallow, what a lot of money.' If you know that a big expense is coming, save for it.
Taking the future into account
Having something on hand is a nice idea when you have had an extra expensive month or when your income is disappointing, for example when you are self-employed. Because a washing machine does not take your income into account. Unexpected setbacks can be better absorbed (both financially and mentally) if you have some savings in your account.
Making dreams come true
Saving for necessary major expenses or unexpected setbacks is mainly saving, so that you do not spontaneously get stressed if a certain amount has to be paid in the short term. But saving can also be a lot of fun. Maybe you have always dreamed of a nice trip? If you have set your sights on achieving a particular savings goal, it is good to visualize that dream. Hang a picture of your dream on your fridge. Dreaming of a family vacation on a Greek island? Put up a picture and say 'no' to other, less sensible, purchases becomes a lot easier.
Borrowing sucks and paying
Having to borrow money for something that cannot be postponed sucks. Because the interest rates that come on top of the loan amount are not wrong. To avoid those high interest rates, you can choose to borrow the necessary money from friends. But that can put a strain on the friendship. That is why it is better to build a buffer yourself.
|How big should your emergency piggy bank be?
A good rule of thumb for the height of your buffer is the following:
Make sure that there is at least 6 x your monthly expenses in your emergency piggy bank. If you find yourself without a job, you can go about six months ahead.
Or determine how much it costs to have all your stuff/devices replaced. The chance that everything will break at once or need to be replaced is small. But it does give peace of mind that there is no need for the man when both refrigerator, oven and television give up the ghost.