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7 Obvious Reasons Why You Should Save Money

by on June 19, 2012

By Samantha Savory

We all know we should save for a rainy day, but have you really sat down to think about possible emergencies that could occur and how much they would actually cost? The money experts at PowerWallet always advise to save a portion of each paycheck, even if it’s only a couple of bucks. Saving for the future is one of the main key ingredients to being financially successful.  Do you want to avoid massive debt or prevent yourself from ruining your credit? Then saving a portion of your income each month is a must! We know it may seem hard to save money with rising living costs, but you have to create a mindset for yourself that regardless of the circumstances, you will save. Here are 7 reasons why you should save at least a little bit every month!

1. Car accident – For every 1,000 miles you travel in a car, you have a 1 in 63,000 chances of getting into a fatal car crash.  Compared to traveling 1,000 miles in an airplane, your chances of a fatal crash are 1 in 1.4 million. What does that mean for you? The majority of Americans drive much more often than they fly, so your chances of getting into a car accident are greater than you’d like to think.  The average insurance deductible for a car crash (if it is your fault) can range anywhere from $500 to $2,000 – this is why it’s important to save!

2. Medical emergency – You or a loved one could get medically ill or hurt in the blink of an eye.  The average cost of a standard health insurance deductible can range from $1,000 and go as high as  $10,000.  If you find yourself in this type of emergency with little or no savings stash, you could severely damage your credit or get into major credit card debt. Stay out of debt and remember to save, save, save!

3. Job loss – With the unemployment rate still hovering around 8 percent, many people are still out of work or could lose their job because the economy has not fully recovered from the 2008 recession. A job loss is scary and it’s important to have at least three months of living expenses saved up in the bank!

4. Animal health problem – Do you have a cat or dog that you adore? Chances are that your animal will get sick at least once and need to go to the vet.  Vet visits can range from $30 – $100 per visit.  And if your furry friend needs surgery, that could easily cost you an additional $1,000. Get your animal health insurance – it’s pretty affordable, usually $15 – $30/month – and most importantly, save a little stash in case of a future animal emergency.

5. Summer vacation – The official start of summer is just around the corner.  I’m sure you will see most of your friends and co-workers taking a relaxing vacay and have the urge to do the same.  If you want to squeeze in a vacation this summer, save money with PowerWallet’s PowerSaver’s (i.e. customized deals and coupons) and start getting more bang for your buck!

6. Holidays are closer than you think – Do you realize you only have a little over five months until Thanksgiving? Then right after Turkey Day, you will get slammed with Christmas/Hanukkah and then New Year’s!  That’s a lot of holiday expenses in a short amount of time and the only way to get through them without being worried about money or finding yourself in credit card debt is to start saving now!

7. Natural disaster – Its hurricane season in the South East of the U.S., wild fires are currently causing havoc in the Midwest and an earthquake or heat stroke can suddenly happen to residents on the East or West coast.  It’s important to remember that last summer New York City experienced a 5.8 earthquake. You just never know and regardless of how amazing our technology and weather forecasting gets, it’s clear and obvious that Mother Nature is unpredictable and you need to be financially prepared!

Start managing your finances easier with PowerWallet. Visit today and start powering on your finances!

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