It's fairly clear to anyone with the slightest interest in the economy that interest rates are at an all time low and there is little interest to be earned on savings in the current economic climate and even for the foreseeable future. So are there still reasons to save money if you cannot earn decent interest on them? Or is saving money pointless in this age of easy credit? I believe that saving money is a really important habit to start for your future financial security. So let's take a look at some key reasons why saving is important even when interest rates are so low.

Paying for Emergency Situations

You might easily be able to cover the odd emergency like a blown tyre on your car when the cost is not too high but could you cover a major expenditure on your car or home without resorting to a credit card or a loan and effectively getting into debt for your maintenance bills? If you think about it practically it makes sense to have an emergency fund to deal with run of the mill repairs to either your car or home because it is a cheaper way of paying for them as there will be no high interest costs to cover long after the repair has been done. Worse according to online broker Solution Loans, if you have a poor credit score you may need to consider bad credit loan for emergency repairs, which is not a good long term option.

Saving for a deposit on your first home

First time buyers need at least 10 percent of the purchase price of their first home to stand a chance of securing a good mortgage deal – even then affordability checks might not be favourable. So if you don't have willing or able parents willing to consider guarantor loans as an option then you had better get saving now for the chance to buy your own home. The more of a deposit you have, the better a home loan deal you can negotiate. Even if you're not looking at buying a home now, buying one in the future can only get more expensive so it is worth preparing now by starting to save.

High-Cost Items Or Events

Perhaps you want a luxury holiday or that fairy tale wedding and tropical honeymoon. Perhaps you have family living on the other side of the world and want to make a special visit to see them. You could, of course, take out a loan or spend on your credit card but then you will still be paying for the event  long after the experience is a distant memory, which is never a good thing.

Living comfortably in retirement

None of us like to think about retiring, unless you are already getting close to retirement age, but for most of us that is getting older and older. Nevertheless, the sooner you start saving for your retirement, the more money you can save to help you live a comfortable life once you finally give up work. Pension savings are tax free so a very efficient way to save. There are various recommended amounts to save depending on your age and time until you expect to retire but, quite simply, many people are not saving nearly enough for retirement so if you don't want to be relying entirely on the state there is no better time than now to start a pension savings fund.