Even though money doesn’t grow on trees, it does have a habit of being able to find its way into our pockets. We all have the means to earn a lot of money if we work hard enough to get ourselves out of the current situation we’re in. Being money savvy also helps because a level head when it comes to money is a good thing to have. Here’s why it’s important to be money savvy.
It Pays For When There’s An Emergency
We can never predict when something bad happens, and in life, a bad thing happening will often cost you financially. We want to prepare for the worst as best that we can, but not everyone does this. Being financially unstable or just not having enough savings can be disastrous and so you want to make sure that you never get yourself into that position. Having an emergency fund is one of the ways you can prevent that and putting in a bit of money each month can prepare you for whenever you might need it. Treat it like any other payment that comes out of your wages each month, and if you’re falling short one month, you know you have those extra savings to lean back on, should you need it at any point.
Helps To Find The Bargains
Bargains can be found anywhere, whether it’s the discounted food section in a supermarket or a sale item in a clothing store. Being money savvy means you’ll always be looking for a cheap buy and that any costly expenditures will make you feel a little queasy. It’s important not to let it control you when you’re trying to treat yourself, but there’s nothing wrong with using a TurboTax coupon or comparing something to try and find a cheaper alternative. Being able to find the bargains puts you at an advantage when it comes to everyone else. It means that you can get a better deal for the things in life that many will often fork out for.
Stops Excessive Spending
Spending your money isn’t a bad thing, but it is when you’re doing it excessively, and you’re not budgeting properly. Those who don’t budget their money will likely have very little clue as to how much money they have to work with. Being money savvy, you’ll know exactly what you have available and what you’ve already spent. Having control of your money is very important.
Doesn’t Get You Into Debt
And finally, it doesn’t get you into debt. Being in debt can be very hard to handle, and once you get into it, it can be very hard to get yourself out of it. Having enough money and not needing to take out a loan or go overdrawn is a rarity for many, but being money conscious can certainly help you avoid the dreaded debt.
So if you’re trying to be more money savvy, just try to be more aware of what you have available and what you’re spending.
This is so true! Thank you so much for sharing this. It really pays to be good with money, it will give you a better life experience. It can definitely be a hard thing to learn for those that do not get taught or shown how though. I have always tried to have a savings so I can be prepared if an emergency happens.
An emergency fund is so important. I was layed off unexpectantly from my job many years ago and I was out of work for 10 months. I never went into debt because I had my emergency fund.
There’s nothing like being on a very tight budget to make you money savvy. If you don’t have it, you don’t spend it (and you can’t get credit, lol) and you definitely undestand the value of a dollar.