Answer:
Helps in emergencies: Emergencies are always unexpected
Cushions against sudden job loss: Job loss is usually traumatic
Helps to finance vacations
Limits debt
Gives financial freedom
Helps prepare for retirement
Helps finance further education
Step-by-step explanation:
1. Helps in emergencies:
Emergencies are always unexpected. Therefore, when they occur, the funds required are usually not part of the regular budget. There will be pressure to look for extra funds at a very short notice. This problem can be compounded if the emergency is a sudden illness or car accident. It could be a matter of life and death. Accumulated savings can go a long way in alleviating the situation. The patient will receive the required treatment immediately. Other emergencies that could be financed through savings are funeral expenses, urgent house repairs and even car repairs. That said, such emergencies usually require a large sum of money. If one lacks the requisite funds, they can consider applying for a personal loan with a licensed money lender in Singapore. This will help to ease their finances for the time being.