The importance of saving money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things.

Should you save money or spend it?

To grow your money in the stock market. Your emergency fund and any savings you're planning to spend in the next few months to a year should be kept in cash. Any leftover money is best "spent" on investments.

Why you should save money?

Saving money is highly important–it can provide peace of mind, open up options that improve your quality of life, increase your wealth due to compound interest, and may even allow you to retire early. Many people earn wealth through a combination of working and savvy saving.