If you ask around for financial advice, you’re likely to come across one important tip over and over again. Save.
It should go without saying, but saving will help you make those large, intimidating purchases down the road. For example, you save to buy a home.
But saving comes in handy at other moments too. What happens if you run over a mess of nails in the road and need to replace four tires at one time? What if your son needs braces?
Why save money? You can’t plan for every single what if, but you can prepare yourself better for those unexpected moments.
Learn more, and see how you can get started making saving a normal part of your life.
1. Financial Security
Perhaps the most obvious reason to save money is for peace of mind. If you start saving money now, you make a promise to yourself to maintain a similar lifestyle. Saving money can save you from living paycheck to paycheck.
Most people, with the exception of a lucky few, will do this at some point in their lives. When you’re young and agile, this crisis to crisis way of life is easier to manage.
As you grow older, you don’t want to have to bear that stress anymore. Saving money can have huge psychological and emotional benefits. You no longer live in a constant state of crisis because you have a safety net.
Saving becomes a lifesaver.
2. Freedom to Take More Risks
Having freed up cash is essential if you ever decide to take risks.
For example, you may wish to open up a restaurant in your favorite part of town. To do so, you’ll need financial backing. You may not even be able to acquire a loan if you don’t have sufficient savings.
You’ll have more free cash to make financial investments. Investments are one of the best ways to prepare for retirement. You can’t invest if you have no money to spare.
Spend years building your savings, and it will pay off. If you ever want to change careers, you’ll have a bit more freedom to do so.
3. Emergencies Happen
Nobody wishes for an emergency to happen, but they’re inevitable. You never know when you’ll need to make an expensive repair on your home or car.
Other emergencies like health emergencies and deaths could take you away from work. You may need to spend time in the hospital with a loved one or fly across the country.
With sufficient savings, these life happenings become a little less daunting on the financial front. It’s best to be prepared than turn a blind eye to the realities of life.
4. Build Discipline
It may take years to develop a good saving strategy. No one ever said financial planning was an easy task.
Start building your saving habits now. Don’t worry about how much money you have or how much you can contribute.
Instead, focus on developing healthy financial habits. When you do that, saving will soon become second nature.
In addition, financial responsibility forces you to stay organized. Organization has wonderful mental and emotional benefits. Developing refined organization skills will work wonders on your personal and professional life.
Financial discipline is a critical component of being an adult. You’ll never be able to say you’re a functioning adult until you can take control of your finances.
5. Large Purchases
The day may come when you decide its time to place your stake in the world. After years of travel and adventure, you want to settle down and start a family.
It may sound cliche, but it’s a reality for many people.
You’ll need a good deal of money saved when it comes time to buy a home. To secure a mortgage, you’ll need to make a sizable down payment.
For most mortgages, you’ll likely need to put about 20% down. This isn’t a hard rule so much a number to keep in mind. When you go out mortgage shopping, you’ll figure out some of the nuances of finding a loan.
6. Kill the Debt Cycle
If you ever plan to get out of debt, you need to save. Don’t rely on credit cards and loan every time a financial “emergency” arises. A spontaneous trip to France isn’t quite an emergency.
You should always aim to keep your credit card balances under 30% of the total line of credit. Do one better and pay your balances in full at the end of each billing cycle.
Save your lines of credit for more important emergencies.
If you have a decent amount saved, you won’t have to rely on them. You can pay for these minor emergencies in cash. This helpful information could keep you on track for a healthy financial future.
7. An Exercise of Patience
Life doesn’t have to be a whirlwind race to the finish line. In fact, that kind of defeats the purpose of living in the first place (if there’s a purpose).
Sure, living quickly can be fun and exciting, but it’s not always the most sound decision. When you save money, you can take more time with decisions.
If you lose your job, you have time to search for a new one. You don’t have to quickly snatch up the first job that comes knocking on your door. Essentially, you can be more in control of your life.
You deserve to enjoy life and bask in the sun. Take moments to yourself and live with a little less stress.
Why Save Money? For a Brighter Future!
Saving money isn’t just a fable of the times of yore. Even young people can and should take advantage of saving money over time.
You’ll have more money for emergencies and exciting life changes. Stay in control of your finances and worry less.
Why save money? You deserve it!
These are just some quick tips to why you should concern yourself with saving money. To learn more financial tips and tricks, check out our finance section.