They say saving money isn’t that easy, but it will just be a piece of cake if you know the reason why you are saving up. Make a plan on how you will budget your income and to where it goes. Having a goal in mind will make it easier for you to save. You must know your purpose on why you are saving for this money and why you really want to achieve this amount of savings.

Above all the things that other people are mentioning that you should save for, here are the top three things that really matter in your life:

  1. Calamity fund

– Your savings for calamity fund usually goes to (knock on wood) an ill family member, or a broken fridge or television at home that needs to be repaired. This will also come handy when acts of God happen like typhoons, earthquakes or fire. It will always be better if you save for these kinds of calamities so that you wouldn’t panic in case it happens to you.

  1. Emergency fund

– Emergency fund is far different from calamity fund. This type of fund can cover an unexpected job loss, say you resigned from work or there was a problem in the economy that affected your company. For business owners, this can be a delay in collection or if business is not that good at that time. Financial advisors recommend to at least have a money for three to six months for you to live in times of emergency.

  1. Retirement fund

– YOU SHOULD START SAVING FOR THIS NOW. This is the most important fund that is neglected by many. The sooner you start; the less time you should work hard in saving for money. Even at a young age when retirement seems so far but in reality it is never too early to start saving up for your future. This will be your fund when you decide to retire and do all your plans as a retired person. You can use this for travel, business, or whatever you’d like to do when you retire. You’d thank yourself later for saving up to live a comfortable retired life.

There are a lot of ways to save up money, either put it in a bank, stash it in a hidden storage at your own home, or invest in the stock market and partner with a trusted brokerage firm to know what type of stock fits you. It is never too late for you to decide! Start saving up for a better future.