We need to save because we do not know what the future has in store for us. Saving money can help in times of emergency, and if you have the ability to save a lot of money you can become financially secure. If you do not have savings and/or investments, there are risks that you might encounter. For instance, if you do not have enough money to cover an emergency automobile problem then you might have to take out a loan that a savings account might have covered. Interest is your friend when saving money ,but becomes your enemy when you have to get a loan. Loans are as Josh Billings said, “Debt is like any other trap, easy enough to get into, but hard enough to get out of.”
It is critical that to save money, you need to develop a budget. Make sure that you use your net income instead of your gross income to develop your budget. Understand that taxes are a way of life and that is money you will never see. As you create your plan to save money think of a couple of things. First, are there any variable expenses that you can reduce or eliminate? Second, are there items you spend money on that you could eliminate and apply that money to a savings account? As I write this, I understand that the most important thing we do in saving money is understanding the difference in a want and a need. You only really need 4 things – a roof over your head, enough food and water to maintain health, basic health care and hygiene, and clothing. Everything that goes beyond this – a big house, name brand clothes, fancy foods, and a new car – is a want. Am I telling you only to buy things you need? Not at all. Life is to be lived, so delight in buying things that will make you happy, but remember to do so when you can afford to. 
