Importance of saving

Mr Bocharov’s salons closed on March 28. His wife and four other children were on holiday in Sri Lanka and were unable to return. The story of the importance of saving starts here.

“When the salons closed I had no rainy day fund,” said Mr Bocharov. “Thank God there are friends who know my situation and occasionally give me some money so we can buy food and medicine. Life has changed and it’s a bit terrifying.”

The National (2020)

His fate echoes that of many in Russia. Forty-two per cent of households have enough savings to maintain essential spending without borrowing for only a month, according to a poll by independent Moscow-based think-tank NAFI in March. Three-quarters of people who borrowed money in the second half of April did so to cover everyday needs, another poll, commissioned by the Russian central bank, showed in early May.

This not only shows the importance of saving but saving for the long term. Rainy day funds or emergency funds are immensely necessary because truly, these circumstances have left us with the impression that anything can happen at any point in time. Emergencies can emerge, either as a surprise or even in times when they are expected, but savings should always be taken into consideration even if it is not for emergency situations. They are helpful and can help us reach certain financial goals in significant speed, allowing the financial growth to be more sustainable.

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