In an era of easy access to credit, it is easy to forget to maintain a savings account but that is a terrible mistake. As I pointed out in a previous post when drawing a budget for your household, savings should be considered as one of the necessities just paying your water and electricity bills etc. No good household budget should exclude monthly savings. You need to provide for savings even if it means cutting down on some necessities so that there is always room for savings.
No one is immune from emergencies in life and savings will come in handy for you during such times. Emergencies such as funerals, sicknesses can easily be taken care of when you have a savings account. And in these tough economic times, you could easily find yourself declared redundant by your employer unexpectedly. That is when you will appreciate the importance of savings.
Another way to prepare for the future is through investing your excess cash. I would refer you to a previous post for a detailed talk on investing. The post is entitled worry free investments.
The video below is a talk from a financial expert, Cordell Thomas MBA on savings and investing.
