Lesson 02
Savings
What it means
The Cambridge dictionary definition of savings is "The activity of keeping money so that you can use it in the future" It basically is putting money away over time to use it in the future.
Why it matters
Saving money matters because if something goes wrong or unexpected the money saved up will help you deal with the struggles and at least would get basic needs for a while. It could also build up for something in the future like a car or university funds.
How to use it
To save money first you need a budgeting plan, like the 50/30/20. The 20% of the income will be directed to a savings account which will hold it there and let it build up over time. You don't need to spesifically cut your income, you could also use less heating, buy cheaper or discounted clothes, eat at home etc. to save up the money for something else.
Real-Life Example
Saving €5 every day will be €1825 in a year which could become a safety cushion, a concert ticket, or the start of a bigger goal.
Did You Know?
Around 1 in 4 people in the world has no savings at all because they don't know how to.
Key Takeaways
Savings are important for emergencies and future spendings
If you even save a little bit, during time it will build up for something big
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