If you’re just starting to think about saving money or you’ve been at it for a while, you might be wondering why? Why save at all? The truth is you should save money for three basic reasons. All of them are important, so read on to learn more.
You Should Save Money for Three Basic Reasons
There are a lot of reasons that make saving money a good idea, but they really fall into three buckets.
Hopefully, these will spur you on to start saving if you haven’t started yet, and maybe up your savings if you have.
1. A Secure Financial Future
There is a lot that goes into having a secure financial future.
Having money in savings and investments will get you there.
From having an emergency fund for emergencies to having the cash for a downpayment on a new car, you will be covered.
Life can come at you pretty quickly and just when things are going really well for you, boom, something knocks you off your feet.
You lose your job and your secure income is gone.
An unexpected expense comes up and if you haven’t been saving money, you can’t afford to cover it, so you go into debt.
Credit cards become your go-to way of paying for just about anything. Then one day you can’t make the payment.
It is a vicious cycle to the bottom when financial emergencies hit.
On the other hand, if you have cash in the bank and investments, then you can handle all of those things that tend to blindside you.
Even more important, you can build wealth.
While it is true that putting your money in a savings account will never make you wealthy, if you have an emergency fund, then you can start investing your money.
Wealth building is the path to a truly rewarding life.
2. A Life of Freedom
When you save money you are giving yourself freedom and financial independence.
You can take a dream vacation. You can quit the job you hate and follow your passion.
You’ll have discretionary income to use as you see fit.
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Financial freedom is so important if you want to live the life you want instead of the life you have to so the bills are paid and you have a roof over your head.
With the freedom that financial security gives you, the sky is the limit.
If you can dream it, you can live it.
3. You Can Handle the Big Things
Unless you want to live in a shack on the beach your whole life, you will need to save money if you want to do anything big.
You’ll need a downpayment of thousands of dollars to buy a house and the money to pay the mortgage.
If you want to go to college or send your kids, you will need money for college and lots of it.
By paying for your children’s education you save them from the stress of student loans.
Having savings means you can enjoy your retirement as well.
Who wants to work until the day they die?
You might not even be able to if you have health issues, and living on social security alone is no fun.
So make a savings plan today and start working on your financial independence now. You’ll be glad you did.
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To Sum it Up:
Saving money can seem like a drag sometimes, but if you want to have financial freedom, be able to cover emergencies, and have the money for retirement, a house, or college, you will need to have a savings goal.