▶ Your Answer : |
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| Some people say spending money is better
than savings. And actually, it is true that there are many positive effects in spending money - the economy is boomed by your money, for example. But if it's not
because you need to devote your precious earnings to to the nation's economy,
it would be much better to saving it as much as you can handle. There are two
main reasons why I say like this.
Let's begin with the interest. You may heard
of what interest is from any economic class right? Interest is a mount of money
that you've receive from the bank of your account. For a small amount of money,
the interest rate is not really sizable in fact. But if the amount of your
savings are bigger and bigger, you'll going to experience undeniable size of
money from your interest. For example, if you win a lottery for the first place
that you get to the tune of 10 billion dollars, and if the general interest
rate of the bank in Korea is 0.02% per quarter, you'll get about 2 billion dollars
in three months without any effort but just saving it in account. It is clearly
reflects the reason you need to start to save your money.
Also, emergency situation is another factor
that shows the importance of savings. During our life time, we sometimes
experience the time when big money is in need. New housing or marriage would be
good examples for this. Anyhow, at that moment, if you don't have your own
money savings, you have to borrow it from somewhere - bank, tertiary finance,
or a friend of yours. Then, is everything solved? Not at all. You'll be busy
paying your money back to your loaner. And after that, another moment of big
money borrowing can be happened again. A new series of vicious circle will
round your life.
To
sum up, saving money is a must regarding the interest rate and the emergency
situation. So I firmly agree with the following statement that saving money is way better than spending it right away. |