Saving money is vital for people’s future, especially for the younger generation. From my perspective, I firmly agree with this statement and I will discuss my reasons.
The primary benefit of saving money is that it provides people financial protections.(it provides a sense of security) If people save money, they will not be afraid of encountering emergencies such as illness, car accidents and natural catastrophes. These unexpected circumstances usually require an amount of money, in order to maintain their life as usual, money plays a significant role. Additionally, while people get older, they may be diagnosed with chronic diseases. As a result, to have better medical treatment, it is necessary to save sufficient money when they are young.
Another advantage of saving money is that it enables people to invest to earn more income(have investment and earn compound interest). If people have enough money, they can buy stocks, ETFs and so on. Investment requires an initial fund, which can only be obtained through saving. By investing, people are able to create passive income. Many people surrounding me prefer to buy stocks to earn more money rather than spending money on entertainment and other unnecessary expenses.
In conclusion, saving money not only provides people financial protections but also creates passive income via investing. Consequently, it is an extremely crucial habit that everyone should understand and realise in their young age.