Sunday, July 22, 2007

Introduction to Saving

Savings that little bit of money set away for a rainy day. We all know that we should be saving money for the future not only is it a healthy and safe practice but it is liberating and necessary if we hope to have something to keep us alive later on when we might decide to retire. There are many different forms of saving money for the future and also different types of savings. I will try and go over 3 major types of savings:

emergency savings
short term savings
long term savings

These 3 types of savings are usually handled in different ways and I will go over experiences with all three. One other thing I want to stress is the power of savings to bring freedom and peace of mind into your world. Being able to cover your necessary living expenses for several months for example allows you time to recover from loss of a job, injury, or other losses of income. If you are not able to cover these things not only would you have more worries but may face such things as eviction. We want to control our money so it does not control us. Well on to a little bit of savings then.

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