People tell you all the time that you should be saving money, but they often don’t tell you why. So if you’re thinking, “I don’t understand why I should be saving money,” then you’re not alone. Here are some of the top reasons why you need to start saving money now.
I Don’t Understand Why I Should Be Saving Money
There are a lot of reasons why you should be saving money, but here are some of the most important ones.
1. You Can Take More Calculated Risks
When you have a bank account full of money for emergency purposes, you can take more calculated risks and know that even if things don’t work out, you can bounce back.
If you always play it safe, then you will miss the opportunity to climb the financial ladder.
Some risks you might consider are investing in real estate properties, stocks, and bonds instead of just putting your money in a savings account at the bank.
2. You’ll Enjoy Life More
When you have money, you will be able to go on trips, attend conferences and events that you always dreamed of going to.
You can also buy your favorite brand of clothing or food when you feel like it, instead of waiting until payday.
While you may think that if you are living on a budget and saving money it takes all the fun out of life, you’ll soon learn it is the exact opposite.
That’s because in your budget you can budget for all the fun things in life that you enjoy doing.
3. You’ll Feel More Secure And Comfortable
When you have money saved up, then things start getting easier for you.
You will be able to pay the bills without worrying about them all the time.
The same thing goes for paying your rent.
You won’t stress out all of the time wondering if you can pay your bills.
I’ve been there before. There was a time in my life that I worried about paying my rent and car payment.
It wasn’t fun and it sure was stressful.
Now that I have a little money in the bank, I can spend my time worrying about other things and not about money.
4. You’ll Have More Financial Security
Savings is the only way to ensure financial security.
This is related to point number three, but it goes beyond that.
When you save money, you can rest easy knowing that in your senior years you can enjoy your life.
You can quit your job at the age of 65 or even sooner. You won’t be working until the day you die.
You can also save for a house or a new car.
You can help your children financially if you choose to do so.
You can live the life you want instead of going from paycheck to paycheck waiting for something horrible to happen and you end up in a terrible place financially.
If you’re not saving money, it only takes a little bad luck before you find that your car is repossessed and you have no place to live.
Here is a quick tip on how to save money:
Avoid the urge of impulse buying.
If you want something, try saving for it instead of buying it right away.
You will save yourself from buying things that you do not really need.
Stop eating ou. It is usually 3 times more expensive than cooking at home and much less healthy in most cases (bread, butter, oil).
5. You’ll Have the Money to Buy a House or Send Your Kids to School
If you want to buy a house one day, you will need a lot of money.
You can expect to put down 20 percent of the purchase price when you buy your home.
A $150,000 home will require a $30,000 dollar downpayment. That’s a lot of money and it doesn’t appear out of thin air.
It can take years to save that much.
If you want to send your kids to college, then saving money is the way.
If you start putting money aside when your children are born, paying for college will be a bit easier than if you wait until they are ready to go.
It will give you and them more options which is always a good thing.
Make saving a priority and don’t put it off until later.
6. You Will Have a More Comfortable Retirement
You will have enough money when you retire if you start now.
If you don’t have savings, then how are you going to pay for your monthly expenses?
The only way is to work until the day that you die or live off of the government.
Social security typically won’t pay all of your expenses, so if you plan on living on just that, you can expect to have to downsize your home and how you live.
You won’t be able to travel to see grandkids or for fun.
You may end up spending your final years living under the poverty level and worrying about how you will pay for medications and food.
No one wants this.
7. You’ll Have Freedom to Travel When You Retire
If you want to travel when you retire from your job, then you better start saving money now.
No one wants to have to sit in some crappy apartment day in and day out when you finally retire and have the time to see the world.
Travel is expensive and if you want to include it in your retirement plans, you’ll need to save for it.
8. You Will Teach Your Children Good Money Habits
When your children see you saving money, they will learn how to do it as well.
This is a life-changing habit that they can benefit from if you start early enough.
If you don’t show them how to save money and be financially responsible, then they could repeat the bad habits they learned at home.
This can set them up to have financial problems for their entire life.
9. You Will Be Prepared For Anything
How would you like to be prepared for anything?
If bad things happen, then you will have enough financial help for when times get rough.
Losing your job or having a major medical emergency won’t tank your finances if you have been saving regularly.
Unfortentantly, bad things happen to good people.
No matter how well you plan your life, there is a nasty surprise out there just waiting for you.
If you have money in the bank, you can deal with it without losing everything you’ve worked for.
If you are not saving money and living paycheck to paycheck, how do you plan on surviving when you can no longer work?
If a natural disaster occurs or you are in an accident, then what?
You might be thinking “I am too young” or “I have time” but if life hits then who do you think will help pay your medical bills?
There is no guarantee that an insurance company will cover everything that is needed for your recovery.
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10. You Will Have Peace of Mind
When you have peace of mind, you can focus on other things that matter.
You are able to start working on your goals of being healthier and more financially stable.
If you don’t have savings, then there will always be a voice in the back of your head telling you that something could go wrong.
With savings, there is less room for doubt to creep in.
Start Saving Money Now
All it takes is setting up a monthly budget and following it.
Saving money doesn’t have to be difficult.
Easy Ways to Start Saving Money
If you haven’t started saving money yet, there’s no time like the present to start.
It doesn’t have to be difficult.
Here are some easy ways to start saving today. It’s all about taking baby steps.
1. Start With Saving Your Change and One Dollar Bills
Save up the loose change that you find throughout the day.
Instead of spending your change, save it.
Just throw it into a jar and leave it there for a few months.
This goes for any $1.00 dollar bills you have as well.
When it gets full, take it to your bank and deposit it into your savings account.
Chances are you won’t even miss this cash and it will add up pretty quickly.
2. Automate Your Savings
Most banks offer some sort of low-risk savings option that will help you build up your savings over time.
You just have to set it up with your bank.
The good thing about this is the money will go into your account automatically, without you having to think about it.
Have a portion of your paycheck directly deposited into your savings account.
This way, it will be out of sight and out of mind.
It’s really the easiest way to save money.
Once it is set up, you don’t even have to think about it again.
3. Cut Out One Discretionary Expense a Month
Try cutting out one discretionary expense every month and put that money in your savings account.
It is easier to cut one thing at a time than trying to cut everything out of your budget at once.
Find something easy such as eating lunch out one less time a week. Then take the money you would have spent on that lunch and save it.
Then find something else you can cut and do the same thing.
Before long, you will find you’re saving a lot of money even though your income hasn’t changed
4. Start an Emergency Fund
An emergency fund is a must for every household.
You never know when the next crisis will strike or when major expenses such as car repairs come up.
If you aren’t able to save up for these, then you could end up racking up credit card debt or applying for a loan from the bank.
Both of these are bad options.
At least if there is an emergency fund, then it’s not going to have a negative impact on your credit or your financial health in general.
5. Work at Paying Off Debt
If you have debt such as student loans or credit cards, then do what you can to get them paid off as quickly as possible.
Once they are, you can save this money as well.
You’ll find out that life without debt is wonderful.
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To Sum It All Up:
There are many reasons to save money. Do be sure that you have a savings goal as this will help you stick with saving. You will find that even if your income doesn’t increase, you can still save by taking small steps towards your goals.