Having a savings plan
is crucial for several reasons. Firstly, it provides financial security in case of an emergency. You never know when you might need some extra cash due to unforeseen circumstances such as a medical emergency or job loss. Secondly, a savings plan enables you to have a financial cushion that you can use to achieve your long-term financial goals, such as buying a home, starting a business, or investing in the stock market.
A savings plan also helps you develop good financial habits, such as budgeting and living within your means. It allows you to prioritize your spending and allocate your income towards essential expenses, such as housing, food, and transportation. Finally, having a savings plan gives you peace of mind, knowing that you have a financial safety net and are on track to achieving your financial goals.