The Importance Of Saving Money For The Future

The Importance Of Saving Money For The Future

The Importance of​ Saving Money For the​ Future
Money in​ my opinion is​ not the​ most important thing in​ life,​ but it​ is​ nice to​ know that you have a​ certain amount of​ money,​ saved or​ invested,​ which you can use if​ ​ needed .​

I ​ actually think that health and​ happiness are the​ two most important things in​ life .​

Having this pool of​ money helps to​ keep me healthy and​ happy,​ as​ it​ means that I​ ​ do not have to​ stress as​ much about the​ future.
I only really realised the​ importance of​ investing and​ saving money,​ when I​ ​ was twentythree years of​ age .​

Up until this age,​ I​ ​ would always spend all of​ my wages and​ did not care if​ ​ I​ ​ was overdrawn in​ the​ bank .​

I ​ used to​ think that I​ ​ could die tomorrow,​ so why bother about saving money which I​ ​ might not ever use .​

This is​ a​ bit stupid,​ I​ ​ know.
At the​ age of​ twentythree,​ on​ one particular day,​ I​ ​ was having a​ conversation with a​ friend called Tim .​

He basically earned the​ same amount of​ money as​ I​ ​ did and​ lived a​ similar lifestyle .​

Tim told me that he was thinking of​ buying a​ flat and​ that he was going to​ cash in​ his investment bond to​ help fund the​ move .​

I ​ was very shocked that he even had a​ bond and​ asked him how long he had had the​ bond,​ and​ how he had managed to​ get the​ money to​ put into it .​

I ​ expected Tim to​ tell me that his parents had given him the​ money,​ but they hadnt,​ he had saved up the​ money himself.
Tim told me that he tries to​ save as​ much money as​ he can per month and​ normally manages to​ save at​ ​ least £100 .​

When he has a​ £1000 saved in​ the​ bank,​ he then invests the​ money into a​ bond .​

I was very impressed with Tim and​ I​ ​ have to​ admit a​ little bit jealous of​ his money .​

I ​ then thought to​ myself,​ if​ ​ Tim can save,​ then so can I .​

I ​ set myself a​ goal of​ saving up a​ £1000 and​ planned to​ do this within ten months .​

I ​ had to​ be less wreckless with my money and​ it​ would be a​ good test for me.
It did not prove to​ be that difficult and​ it​ was a​ good feeling seeing a​ healthy bank balance for once .​

After only eight months I​ ​ had saved my target of​ £1000 .​

Instead of​ putting it​ into a​ bond,​ I​ ​ decided to​ take an​ even bigger risk and​ to​ buy some shares .​

I ​ am happy to​ say that two years later the​ share price of​ the​ company I​ ​ had chosen to​ invest in,​ had risen by sixty percent .​

This I​ ​ have to​ admit was pure luck as​ I​ ​ had simply guessed at​ ​ who to​ invest in​ .​

The company I​ ​ chosen had had a​ dismal few years and​ its share price was at​ ​ its lowest ever level .​

I ​ had heard that the​ company had recently had some major changes at​ ​ the​ top and​ I​ ​ decided to​ gamble just on​ these few facts.
That was my first experience of​ investing and​ it​ gave the​ taste for it .​

I ​ have regularly been buying and​ selling shares as​ well as​ investing in​ unit trusts for around ten years now .​

it​ has also become like a​ kind of​ sport or​ hobby for me,​ as​ I​ ​ am trying to​ always pick a​ winner .​

I ​ have won some and​ lost some but have had a​ huge amount of​ fun along the​ way.
I now have a​ certain amount invested in​ different ways and​ when for example I​ ​ have a​ big car repair bill,​ I​ ​ have no need to​ panic as​ all I​ ​ need to​ do,​ is​ to​ cash in​ some of​ the​ units of​ my unit trust .​

That is​ what I​ ​ like about a​ unit trust,​ unlike with an​ endowment policy where you need to​ wait until the​ end of​ the​ term to​ have access to​ your money,​ with a​ unit trust you can take out all or​ just some of​ your units at​ ​ anytime that you want.
Before I​ ​ started to​ save up money,​ I​ ​ would often get quite stressed about the​ future .​

How would I​ ​ be able to​ buy a​ house? How will I​ ​ be able to​ buy a​ decent car? These are just two of​ many questions I​ ​ would ask myself .​

I ​ would try to​ ignore the​ questions by saying to​ myself that at​ ​ that stage of​ my life,​ I​ ​ should be earning more money.
I am now very happy that I​ ​ had that conversation with Tim .​

Investing money in​ the​ way that I​ ​ do has helped me to​ get onto the​ property ladder and​ also helps to​ fund my yearly holiday abroad for my family .​

it​ also gives me a​ peace of​ mind for the​ future and​ helps to​ to​ sleep easier at​ ​ night.

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