How Important Is Saving for a Household and the Economy?

5. How important is saving for a household and the economy? How much should be saved?

Saving for a household should be a priority. Geoff Riley (2010) explains that "savings provide a source of household wealth and a buffer against uncertain time" (p.1). Through saving money, individuals will be able to help boost the future of our economy. In today's economy, many people are spending too much money and living beyond their means which is creating mounds of debt for themselves and our nation. According to Stan Reybern (2010), "43% of American families spend more than they earn" (p.1). This kind of spending makes it very difficult for Americans to save money and stay out of debt. Proverbs 21:5 (NIV) states that "The plans of the diligent lead to profit as surely as haste leads to poverty". The way to save money for a household and to boost the economy is for one to be diligent, careful, and thorough. It is not possible for every household to save the same amount each month, but each household should be saving something.

Unemployment and sickness are two unfortunate situations that could put a household in a financial crisis. Each household should try to save enough money to cover three to six months of living expenses. No two households living expenses are the same, but one thing is for certain-households should have enough money stashed away to feel secure. In order to save for this possible financial crisis, people should budget their money each month and try to cut back on the unnecessary expenses such as eating out and extra entertainment expenses. After a budget is set with income and expenses, an individual should take the portion of income left and save it, whether it is ten dollars or one hundred dollars. Every little bit saved per month adds up and can help a household and the economy.