The Value of Savings

The difference between what you earn and what you spend each month is the amount you have available to save. The more you can increase that difference, by earning more and spending less, the more you can save.
Saving has some very practical advantages:

• Keeping three to six months of living expenses in a savings account means you’re prepared for unexpected expenses — whether your car breaks down, your computer fries, or you’re temporarily between jobs.
• Having savings also means you can afford important extras without straining your regular budget.

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