4 Reasons Why Saving Money is Important

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In my previous post, I mentioned that saving money or setting aside money for the future is one of the secrets to wealth creation. While this principle is recognized by many people, however, this is seldom strictly and religiously followed. I know many friends who struggle in their personal finances especially in saving their hard-earned money. Not because they do not have money to save, in fact, most of them earn significant and above average income every month, but simply because, according to them, they do not have enough money to save. Their case is more of lack of spending or budget plan, and setting their priorities clear, and not the lack of money to save.

There could be many reasons why saving money is important. Understanding the reasons is more important than knowing the how part to save money. The why is more important because it is your motivation that drives you to save money. It is the driving force, that leads you to act. The how is easy to learn and will follow once you are clear about the why. So for the meantime, let's talk about the why of saving money.

Like I said, there could be many reasons you can think of why saving money is important. Here I will share with you some Bible perspectives about money savings and its instruction on how we can best handle our finances. The Bible is rich in instructions and advice when it comes to the matter of finances.

God Wants us to be Good Stewards of His Provisions for us

Jesus tells us in Matthew 25:13-30 and Luke 19:11-27 a parable of the talents. The story is about a man who is preparing to leave for a journey and entrusts his wealth to the hands of his servants. He distributes his possessions according to each servant's ability.  He gave five talents to the first, two talents to the second, and one talent to the third servant. In this story, we see how the first two servants used the master's money. They invested the money they were provided with and made it grow. The other servant did not invest the money and simply hid it under the ground. He produced nothing for the master. Each servant made an accounting upon the return of their master. The first two servants were happy to report with their master how they were able to multiply the master's money. Both received a reward and commendation from the master as "well done thou good and faithful servants." Because they were faithful, reliable and proven to be capable by the master, they were given more responsibilities.

The fate of the third servant was different from the first two. Because he was not able to invest the money entrusted to him by the master and he did not make it grow, he received punishment rather than commendation from the master. He was rebuked as  being "wicked and lazy."  His master suffered loss because of his laziness and incompetence. The value of the his master's money must have declined due to inflation. As a result, the master took away his talent and gave it to the servant who was able to produce more.

God wants us to be good and faithful stewards of whatever it is He has given us, be it money, time and other things. Saving money is good stewardship and it pleases God. If God can trust us with little things, He will entrust to us more of His blessings just as He has promised in Luke 16:10, "He that is faithful in that which is least is faithful also in much. And he that is unjust in the least is unjust also in much."


Saving Money for Famine, Hard Times


Another important reason why we need to save money is to prepare for the famine and hard times to come. The Bible tells us that there are seasons of life. There will be a time of abundance and a time of lack. During periods of high economic growth, our life might be easy and we can live in abundance. However, in time of economic recession and depression (period of slow or negative economic growth), then life can be really difficult and devastating especially if we are unprepared. The season of life is definite but we do not know exactly when the time of lack and famine will come upon us. That is why when we are in abundance, we need to store up so that when the hard times come, we will be prepared to handle it and we will survive.  There is no better way to prepare for the hard times than to save money in time of abundance. Take these wise examples from the Bible which illustrates the value of saving money.

"Four things on earth are small, yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer." (Proverbs 30:24-25)


"Go to the ant, you sluggard! Consider her ways and be wise, which having no captain, overseer or ruler, provides her supplies in the summer, and gathers her food in the harvest. How long will you slumber, o sluggard, when will you rise from your sleep? A little sleep, a little slumber, a little folding of the hands to sleep, so shall your poverty come on you like a prowler, and your need like an armed man (Proverbs 6:6-11)

The story of the ant tells us the lesson to be hard working and to always plan ahead. We should not be lazy. If we are lazy, then it's like we are expecting poverty to fall unto us. And in times of abundance, we should store up our supplies for the hard times to come. And to save money now for the challenging times ahead is a wise action to do.

Another example is the story of Joseph in Genesis. Their story also teaches us a lesson to plan ahead and how once can be used by God as a blessing for others.

"Let Pharaoh do this, and let him appoint officers over the land, to collect one-fifth of the produce of the land of Egypt in the seven plentiful years. And let them gather all the food of those good years that are coming, and store up grains under the authority of Pharaoh, and let them keep food in the cities. Then that food shall serve as a reserve for the land for the seven years of famine which shall be in the land of Egypt, that the land may not perish during the famine." (Genesis 41:34-36)

It is Foolish to Spend all our Money

Proverbs 21:20 tells us that it is foolish or unwise for us to spend all our money and use up everything that we have. We are certain that we will experience some period of abundance and also period of lack in our life. But we do not know when hard times and scarcity will come upon us. That is why the Bible warns us.

"The best food and olive oil are stored up in the houses of  wise people. But a foolish man eats up everything he has." Proverbs 21:10, NIRB)

If you spend everything that you earn every month, and do not save a fraction of what you earn, it can really be a serious problem for you especially in period of tough economic situation. But it is never late to start. Endeavor to pay yourself first, and also try to develop your spending and money saving plan. Try to start saving small money, say between 5-10 percent of your monthly income and stick to it, until it becomes part of your habits. Then gradually increase your savings rate to a level that is most comfortable to you. For tips about how to save money,  I will write about the how part of saving money in my next post.


Providing for our Family Needs is an Honorable Thing to do


"But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than the unbeliever." (1 Timothy 5:8, NKJV)

Another  reason why saving money is important is that we need to provide for our family needs. God looks at our ability to provide for our family as an honorable act. And if we don't provide, God sees it as a serious sin and an act of irresponsibility. God does not say that we provide the needs of our family only in time of abundance and in good times. But He expects us to provide for their needs at all times and in all seasons of life including in time of hard economic time. How prepared are you now?

We know there are seasons in life - time of abundance and time of lack. We do not know when the time of lack will come and what the future holds. Only God knows about that! But one thing we are sure about is the fact the God will provide everything that we need to survive. God might be abundantly blessing you today and providing you a means now to save for your tomorrow's needs. But if you will spend everything that God is providing you now, then you will not have for tomorrow. Learn from the story of the ants and Joseph. Start now to saving money. It is always best to plan ahead, and let us commit all our plans to God. The outcome is in God's hands.