If you have a source of income, it is important to come up with a savings plan. Nowadays there is so much pressure from everywhere to save money. You may wonder why this is so important if you can cater for all your needs without any stress. This might be true, but you can never be too sure about tomorrow. Putting some money aside can come in handy in the future, and you will be grateful that you saved up. People may save up money for a variety of reasons. Below are some of the reasons why it is important to save up some money.

Emergency Purposes
You can never be sure about what will happen tomorrow. An emergency can arise, and you can suffer a lot if you have no money set aside to cover the expenses. Some of the emergency cases that may need to be covered include medical expenses, car repair, or even unexpected job loss. It is important to make sure that you save up for at least three to six months if you want to save up some little money. Additionally, you should also make sure that your insurance is working. This can act as a top up for your emergency fund.

Everyone will eventually retire. It is important to be prepared when this happens. Saving for retirement early can save you the stress of having to save up in future. It is vital to do this because the longer your money continues to remain saved the more the interest it incurs. You can always make use of compound interest formula calculator that allows you to know your gross income. The minute you become aware of your gross income, you will calculate the percentage that you need to save.

You cannot enjoy a weekend or two weeks of vacation if you do not save up. If you are planning to take a vacation or a luxury trip, you need to start saving up early. Put enough money aside to cater for all your expenses as you enjoy yourself. Be it in the Caribbean, Europe or Africa it is important to make sure that you are saving up money for your dream trip. For more details about mortgage, visit this website at http://money.cnn.com/real_estate/ .

Save For a Home Deposit
If you are planning on buying your own home, you should always work with a savings plan. It is important to save up because it is easier for you to negotiate when you have cash in hand. In addition to this, if you have a down payment it is much easier to get better hourly to salary interest rates.