I was asked the other day how have you benefited from saving money? I thought instead of answering the question just myself, I’d also ask some people I know that are really good at saving money. Hopefully, you will find some inspiration here to help you to start saving.
How Have You Benefited From Saving Money?
There are actually a lot of benefits that come with saving money, but here are some of the more important ones that might make a difference for you.
Some of them might just surprise you.
1. It Gives You Peace of Mind
I’ll start with myself and then move on to the others I asked this question to.
I’ve said it before, and I’ll say it again.
Saving money and having money in the bank gives me peace of mind.
There were a lot of years that I lived hand-to-mouth.
I had to worry if I could pay my rent or car payment each month.
I remember one time that I was $0.25 cents short for my rent. I actually saw a quarter under a vending machine at the grocery store and I dove down to get it so that I could pay my rent.
It wasn’t my proudest moment.
It also meant I didn’t have any money – at all – after I paid my rent.
Yes, I did have a paycheck coming in a couple of days, but it was still a really bad situation to be in.
I had no one to blame but myself.
Trust me, I had no peace of mind in those days. I was always worried and stressed.
Fast forward to now. I am certainly not rich. I’m nowhere near rich, but I can pay my bills and I have money in savings and investments, and if something did happen, I would be okay.
Needless to say, I sleep a lot better now.
2. It Helps You Deal With Emergencies
Heather and her husband, Bill are in their early 30’s. They both have pretty good jobs and even bought a smaller but nice home.
They have always saved money, so they live comfortably if not lavishly.
Everything seemed to be going well for them until the day Bill got into a car accident.
It was a pretty bad one but he lived through it thank goodness.
Bill had always worked in construction and after the accident, he was out on disability for about 8 months.
Their monthly income took a big hit.
It kind of put their long-term goals on pause and they had to deal with the daily reality of getting Bill back to good health so he could go back to work and still pay their expenses.
Luckily, because they were savers, they had a healthy emergency fund. This emergency fund had been intended to be used for just this type of situation.
They were able to deal with all of the medical costs and their monthly expenses without having to use a credit card or cards.
They got through the situation and came out the other side with funds still available.
If they were the type of people that didn’t save money then they could have lost their house and cars and ended up in bankruptcy.
As they say, the best-laid plans of mice and men…in other words, no matter what your plans are, life just sometimes happens.
If you have been saving money, you can make it through a difficult situation without ending up with even more difficulties.
Of all the reasons to save money, this might be one of the most important ones.
3. You Can Help Others
One of the great benefits of saving money is you can help others.
If you’re barely getting by, then it is pretty difficult to give to those in real need.
Janet and her partner Tony made giving to others a savings goal.
Each year, they set aside a percentage of their income to help others.
The cause closest to their hearts is homeless families.
They use this extra money to give to organizations that help these folks.
It truly is a win-win.
This giving makes Janet and Tony feel good about themselves and how they are helping others.
And families going through a really difficult time are getting the help they need.
Without this type of savings goal, they would never be able to help others.
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4. You Can Follow Your Dreams
Mark’s dream was to retire early and travel the world.
He worked for a major corporation, but it always seemed like a living death to him.
He really wanted to break out of the cubical life and see what was out there.
Mark wanted to see America and then hop overseas and find out more about the world.
It was a great dream, but he was able to make it a reality.
He started saving and investing from the time graduated college. He put as much money as he could into his investment accounts so his money would grow.
He never lived the typical party life of a young man. His friends sometimes gave him a hard time and thought he was boring, but he knew that every dime he saved meant he could find his freedom one day sooner.
After working for ten years and living very frugally, he made his move.
He sold pretty much everything he owned and then quit his job.
Mark had always thought that life events and living life the way he felt was right for him was more important than the traditional 9 to 5.
He has been living his dream life for two years now.
If he hadn’t given his personal finance a lot of thought when he was younger, he wouldn’t have been able to live his dream life.
5. Improve Your Relationship
Money issues are one of the top stressors for any relationship and that was certainly true for Jill and her wife Peggy.
When they got together, Jill was a pretty good saver but Peggy liked to spend as much as she earned as soon as she earned it and sometimes more.
This didn’t bother Jill too much until they got married and moved in together.
Then money because a daily issue for the two of them.
Jill wanted to start a retirement plan and start saving for retirement as well as saving to get to a place where they had financial security while Peggy was happy if she could meet her living expenses.
Another issue is that Peggy had some debts that Jill wasn’t aware of before they got married.
It was a bad situation all the way around and it almost ended their relationship.
They ended up in couples counseling and finally worked through this issue.
Jill realized she could be a little controlling when it came to her financial plan and Peggy realized she had been living a little too close to the edge when it came to her debts and spending.
The two got the financial advice they needed and came up with a financial plan they could both live with.
Peggy got her debts paid off and the two of them were able to build up their savings accounts and mutual funds.
Maybe the best outcome was that their relationship was repaired and they are very happy now.
Without the stress of money worries, they get along much better and have a happy relationship. They also have mutual goals for their future.
It was work, but they took the necessary steps to make it happen.
To Sum it All Up:
There are many benefits of saving money. From improving your relationships to having a less stressful life, to living your dream life, all of it starts with a savings plan.