Let’s find out “12 Reasons Why You Should Start Saving Now” There are seven good reasons to start saving right away. We all wish to live longer lives because they are good lives.
However, as we live longer, we become less and less able to exchange our time for the most valued economic good—money. Knowing personal finance is crucial because you need money to purchase the things and services you require to thrive.
12 Reasons Why You Should Start Saving Now
Saving money for your family’s future should therefore be a priority, just like paying your expenses. The nicest thing about saving is that it makes you less anxious and more self-assured the earlier you start.
But you might wonder, why bother? We save for a variety of reasons, including those listed here and others.
#1. Investment
Economists believe that you should make your money work for you. By putting your money in a savings account, bank FD, or monthly SIP; you can make your money grow by getting higher returns. By investing in long-term plans, policies, and schemes, you beat the rising costs of inflation effortlessly. Cutting down on unnecessary expenses and creating a monthly saving plan can help you earn higher interest as well as an additional interest income on your salary.
#2. Financial Freedom
Once you start getting paid, you will start to feel financial freedom. However, when we feel luxurious and failed to save, there may be a time in the future when we are forced to limit our financial decisions.
Taking the process of creating a financial plan as soon as possible will allow you to be financially independent for life.
Savings also helps avoid debt.
#3. Emergency Situations
Having money in times of crisis continues to solve the problem effectively and in the short term. It basically gives you financial security in critical situations that require quick response.
#4. Your Children’s Education
Tuition is rising all the time, maybe even every year.
Saving for your own education for another degree or getting into a master’s program will go a long way.
When children are in the picture or in the future, education immediately becomes a big part of their lives. Saving regularly for their education is important because it will help them complete the academic period and provide a seamless learning process.
#5. Prevention Against Sudden Job Loss
Of course, we don’t plan on getting fired, but it’s an unavoidable fact of the job market.
Businesses are closed, bankruptcy is announced or business profits are lost, forcing the employees to stay afloat.
The Covid pandemic has proved that nothing in our lives is permanent, including our jobs.
Having savings will be useful in such times.
#6. Plan A Wedding/Wedding
Weddings are expensive. In fact, they represent a great financial expense.
But if you and your partner start saving in time, you will be able to have a wedding without having to ask friends and family for gifts or billings.
#7. Retirement
We save for retirement so we don’t have to rely on others to survive when we can no longer work for a living.
Saving for retirement should start as soon as you get your first paycheck and this practice should not stop until you retire.
Once you save for retirement at a young age, living and growing old becomes a fun and healthy experience.
#8. Vacation Allowance
With the knowledge that all of our requirements, including those for food, shelter, education, and health care, have been satisfied, we occasionally feel the need to reward ourselves for a job well done by taking a vacation.
Similar to weddings, vacations may be pricey. It won’t be difficult for you to look forward to the next vacation when you leave work, though, if you start saving money for it early.
#9. Living debt-free
If you want to get out of debt, you need to save money every month regularly. Relying on credit cards for all your expenses could land you in some serious trouble. You need to have some funds stashed away to pay off your credit card bills every month, and not incur high penalties in the form of late fees or charges.
You can rely on your credit card for monthly expenses, but it is essential to pay them off every month on time, instead of collecting debt in the long run. By relying on your savings to make these peripheral expenses, you can save a lot of money by avoiding the use of your credit card and living a debt-free for life.
#10. Unforeseen expenses
We all have unexpected expenses knocking on our doors at all time; it could be a health issue, car trouble, house repairs, or even a family event. If you have some savings in your bank account, you will be able to manage these unforeseen expenses much more prudently. It is always better to be prepared for these expenses and have some savings to fall back on in.
You need to have some money in an emergency fund, which can be used when unexpected things come up, rather than borrowing money from friends or family. Building an emergency fund regularly can also help in maintaining your budget and keeping a check on your monthly spending.
#11. Buying a home
One of the most significant financial decisions that a person makes is buying a house of their own. However, even if you are planning to take a home loan, you need to pay a part of the price as the down payment. This can be anywhere from 10-20% of the total purchase price, and only then banks will consider lending you the remaining amount. You will be able to pay for this only if you have saved enough money. Further, if you are able to a part of, or the entire amount, yourself, you will also save a lot on the interest amount on the home loan, and use that money for moving, repairs or decor.
#12. Living worry-free
Last, but far from least, is to enable you to live a worry-free life. If you don’t want to compromise on your life choices continually, it is best to build a savings fund and contribute to it regularly. The importance of saving money is simple; it allows you to enjoy greater security in life. In case you have some money set aside, you will have something to fall back on in hard times. If you have money set aside for discretionary expenses, you will be able to take more risks, like start a new business, or take a break if you want. You can live your life stress-free if you don’t have to worry about money all the time.
Saving money instead of spending it is easier said than done. However, having some savings stashed away can give you unparallel confidence in making smart life decisions. If you haven’t inculcated a habit of saving a part of your salary yet, start with small steps and set up a weekly or monthly saving plan. Cut down on unnecessary expenses and make wiser spending choices to add more to your bank balance. By having a clear goal or purpose, you can save more. Look for reliable and reputable saving schemes from banks that offer a higher interest rate and contribute towards the same regularly.
Final Note
At the end of the day, getting started on the journey to save money will enable you to have a good lifestyle. You will be able to choose the job you want or have an option to start your businesses, buy your dream home, or travel the world. By saving money, you can open up new avenues in life, which otherwise would be difficult, or even, impossible. Financial independence is a must for living worry-free. So don’t wait for things to get tough and start saving today.
Let’s embrace saving money, as President William Ruto urged, for our future prosperity.
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