FinanceDogma – Finance, loans, creditcard and mortgages

November 23, 2015

Save for a rainy day

Filed under: Finance — admin @ 1:03 pm

The most basic reason for saving is the old maxim of “putting something away for a rainy day”.

Most people are optimists, and young people particularly so. We believe that nothing unforeseen will go wrong in our lives to cost us large sums of money.

It is good to be optimistic, but it is also good to be realistic! Believe me, by the time you are 30, if not a lot younger, you will know all about the many things that can go wrong and cost you a fortune!

Your car could suffer a serious breakdown the day after its guarantee has expired. Loan interest rates could rise (they frequently do, after people have calculated what they can afford to pay on a certain purchase), resulting in sharply increased repayments. The company you work for could find itself in trouble, and have to retrench some of its staff. Even the civil service could, in a time of serious national distress, find itself unable to pay as many employees as it would like to — meaning that some of them (including maybe you) could find themselves with a reduced bonus or no pay rise, or maybe even no job, at a time when every cent is needed to pay hire purchase or house loan instalments. Or you could suffer a serious injury which keeps you off work for longer than your employer’s insurance is prepared to carry you on full pay.

Have you not seen your parents’ swimming pool develop a crack which needs costly repairs, at the same time as the lawn mower or the washing machine broke down, just when they needed to kit out your younger brother for high school — and all of this happening immediately after the summer holidays which themselves cost an arm and a leg?

If for no other reason, then, save for a rainy day. Because assuredly, that rainy day will come!

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Powered by WordPress