The Importance of Saving
The Importance of SavingBy Abesi Manyando
We all know that we can’t predict the future no matter how hard we try. Andre Benjamin said it best when he sang, “you can paint a pretty picture but you can’t predict the weather. These days predicting the economic forecast can be even more challenging than guessing if it’s going to rain or shine. That is why “saving should always be a priority,” says Financial Strategist, Donnell Bobo-CEO of DB Enterprise Financial. Bobo’s company helps consumers and individuals create a financial plan that allows them to strengthen their financial and credit portfolio. His sub-company, Cybernetics even develops software that helps consumers manage their portfolio and credit. “I think as minorities we are already disadvantaged when it comes to financial literacy and wealth. We are huge spenders but not as great at saving. There are not a lot of us who can say we are as represented when it comes to ownership. It seems no matter how much money some of us make as business owners, celebrities or athletes in the end we often find ourselves in the red owing creditors. We have to practice better financial literacy so that we can put ourselves in positions to be debt-free and fully in control of our finance,” said Bobo. Bobo says saving is important because it allows banks to be have available funds to loan money to businesses owners and individuals in need of financial assistance. When it comes to the purchases of homes, cars and educational loans a lot of people don’t understand that banks are able to loan individuals that money because of savings. “The more we save the more economically empowered we become,” concluded Bobo.
Donnell Bobo’s Tips for Saving.1. Emergencies: Money for emergencies is needed because things happen when we least expect it. Unexpected illness can occur; car trouble or maybe just some overdue home repairs are need. In the event that you are renting, than maybe saving for a new home or the down-payment could an emergency.
2. Retirement: You always have to set aside money for retirement. You don’t want to be a senior- citizen and working 40 plus hours a week in your older age. Even if you have a retirement fund it doesn’t mean that your fund won’t dry up so you have to have a good savings plan.
3. Vacations or a Family Get Away: Work can really get stressful at time. Whether you punch a clock or run your own business, sometimes a vacation is mandatory to continue and cope with ongoing business needs and/or job activities. You have to have money in your account to getaway for that Caribbean or European vacation that you deserve. Even if you just want to take your family to Disney you better start saving towards that now.
4. Continued and Improving Education: If you have children you have to plan towards their education. Better yet, even if you are an adult it is good to have funds set aside for continuing education. There are many people who switch careers in their thirties or forties. All of this comes with have the current skills required for those jobs. Technology has engulfed the career front and to be useful in the workplace, you have to keep up with the technological trends. Taking educational courses in order to compete with the growing trend has become second-nature for many people. Saving money to go to school in order to advance your knowledge in technology or any field that you want to elevate in is a great investment and be the difference between make $36,000 to well over $100,000 a year.
5. Additional Medical Expenses: Having insurance doesn’t always mean you will have disposable income for any unforeseen medical expense. Remember a lot of times you have to pay a co-payment for medical issues. Because you can’t predict your health or any accident that can occur it’s important that you have a health savings.
For more tips or consulting on all things financial (taxes, credit, & investment) please visitwww.ucsconsumer.com or call 1-877-477-2011