There are normally three phases of normal human life. A person will learn at the start of his life. He will start earning in the second phase. After the earning phase, the person enters the retirement phase. In this phase, he has to rely on what he has already earned. When you are in the second phase of your life, you must plan for the third phase with full dedication. There are many benefits to saving for your future.
If you have read the book “The Richest Man in Babylon” you must know about the benefits of the compounding. When you save for your future in the early phase of life, your money will increase by the compounding effect. Every year your money will increase. The increase becomes rapid as time pass. A 10% gain in one year will give you more than a hundred percent gain in 10 years.
Be prepared for an emergency
When you are saving for your future in the right type of retirement or future saver plan, you can use that cash in case of a medical emergency. You can also use it in case of some accident when you need a huge amount of cash. You can check the details on the ekscalifornia.org.
When people are moving from the earning phase of life to the retirement phase, they make a lot of compromises on their lifestyle. Most of us will decrease our expenses in the retirement phase. When you save for your future, you can continue enjoying the same lifestyle as you were enjoying before retirement.
Avoid selling your assets
Building assets can be one of the most important ways of securing yourself. When you build an asset, it will run in your generations. If you have not saved for your future, you may have to look for alternate ways of getting cash to maintain your lifestyle. In this case, you will have to sell your assets to get money to meet the ends. It can be extremely frustrating for someone who has worked extremely hard to build these assets.
You can choose
The most important benefit of saving for your future is having a choice. Many companies like ekscalifornia.org are giving savings plans. You can keep the end in mind and start saving. You can start with less money or you can start with a huge savings plan. It is up to you as you are free to choose.