If you've ever had an accident or your car broke down, you know that sometimes these expenses seriously affect your budget and most of the time you resort to credit cards to pay for them.

Having financial freedom. Many times you resort to any kind of credit because you need to face certain expenses that are out of your budget.

If you have savings, you can use credit in a much smarter way to meet some long-term goals or to acquire durable goods.

Be able to finance some important expenses. Having money saved will help you pay for events such as vacations, back to school or a wedding, and will make everything much easier.

It will allow you to choose the things you really want and not the ones you can afford, or it will prevent you from going into debt to pay for what you would like to have, for example, that new TV.

Make your money grow. Once you have a considerable amount of savings, you can put that money to produce more through investments.

There are several ways to do this, from mutual funds, to interest-bearing savings accounts, to starting a business. The goal is to keep it growing and to have more and more economic stability.

Translated by: A.M