Question

State two reasons for saving.

State the reasons for saving.

Answer 1

1. Emergency Fund: Saving helps to create a financial cushion to handle unforeseen expenses such as medical emergencies, job losses, or essential repairs, ensuring financial security during difficult times.
2. Future Goals: Savings can be amassed to attain specific goals, such as home ownership, education funding, or retirement preparation, allowing individuals to meet long-term financial objectives.
3. Financial Security: Ensuring long-term financial stability and independence.
4. Debt Reduction: The goal is to pay off debts faster, which reduces interest payments and financial hardship.
5. Investment Opportunities: Having cash available for investment allows money to grow and provide more revenue.