Of course, we’re going to say it’s very important – but it’s not relevant what we think, it’s only relevant what you think, because a savings plan is for Future You, not us. Here are two scenarios for you to consider, to help you answer the question.
Scenario 1: If you have savings
You are several years older than you are now and you have saved up a nice large pot of savings and investments. You have no financial worries, because years ago you worked out what you wanted, how to achieve your goals, acted on your plan, and now you are automatically living within your means whilst still adding to your overall wealth and getting constantly wealthier. You are living your best life and when you decide you want to do something big, you can – because you’ve got the money to pay for it. The savings you have give you options and flexibility, and you can use it whenever you need or want to :-)
Scenario 2: If you do not have savings
You are several years older than you are now and you still don’t have any significant assets, and frequently have to say “no” to various opportunities for both spending and great investment opportunities. There’s a long list of things you want, but no way to pay for them. You’re working hard, but haven’t got used to saving so you’re spending all the money you make each month and not improving your financial situation on any sort of regular basis. You’re thinking about how much money you’ve earned in your life, and wondering where all that money went, and start considering all the scam-infested get-rich-quick schemes and high-risk investments, because you don’t have enough time left to successfully build up wealth in a safe get-rich-slow low-risk savings plan. You wish you had put aside just a small amount each month for the future, because the future is now here – and you haven’t prepared for it :-(
Now answer that question for yourself: How important is it to have savings?