Parents have a long tradition of teaching their children to be economical. In this case, they teach them to save. This mindset can be likened to “saving” in the adult world, to the point where the child sets aside the rest (or a portion) of his or her allowance to meet future needs and/or wants.
Indeed, saving is, by definition, the result of calculating income minus expenses. It is a fact of not spending a part of one’s income. However, many people still wonder if starting to save early is really advantageous. So, without further ado, let’s dive into this blog and learn everything you need to know about saving as an older person.
Saving: it’s about planning, providing
Let’s take an example to get a clearer idea of what we mean. Why do we say that saving is planning and providing? Because saving also means putting money aside. This sum, set aside, can be used to meet possible needs. It is a way to protect yourself from bad surprises.
In order to be close to her workplace, Marine rents and lives in an apartment in the city. She earns an income of 1000 euros per month. The sum of her monthly expenses costs her 3/4 of her income. She saves the remaining 250 euros.
Sylvie is in the same situation as Marine and earns the same amount as her each month. However, Sylvie never saves. She spends whatever she can earn.
So, when the day comes that both women are faced with the same contingency (it could be a problem with electricity, air conditioning, a necessary trip to the parent’s house, a sudden loss of income, etc.), we can conclude that, unlike Sylvia, Marine has a solution at hand.
Simply put, a person who is in the habit of saving is more cautious and therefore can cope better than someone who spends all their money without worrying about tomorrow.
Saving is earning
Banks offer different types of savings, including property, cash, and financial savings. The last type of savings differs from the others in that it allows the amount invested in savings to grow in the medium or long term.
Also called “available savings”, liquid savings are, in a way, the type of savings that are made to anticipate future financial needs. It is not very easy to see how much it will grow. As for real estate savings, we can say that it is the type of savings preferred by the French. In terms of inflation and risk, it is the safest.
Saving is building
Starting to save early allows you to build. In other words, it’s a way to design and implement your project(s) bit by bit. Indeed, it can be difficult to find financing, especially when the project is personal. Getting a bank loan usually requires a lot of paperwork and a guarantee. On the other hand, the total amount of money you have saved over a certain period of time can allow you to make your project a reality. Savings can (help) finance education, build a house, buy an apartment, start a business, etc.
Saving early promises comfort later
Saving early promises comfort later is more related to the pension received by retirees. It may happen that the amount is not enough to meet their needs. So, to be sure not to face this kind of inconvenience, we advise you to make savings from the beginning of youth (young active).
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