Read any financial guide online, and there’ll be one tip that stands out every single time; save money! Everyone always tells us to save money, but do you even know why you should do this? Saving money can bring you so many benefits, and here are ten powerful reasons that’ll convince you to start saving right away:
To limit your spending
Stop wasting money by spending it on everything you see. We’re all guilty of it, and we all spend way too much on just about everything. But, if you start saving money, then you instantly limit how much you can spend. Set up a savings account with a standing order every week. Here, a set amount goes into that account, so you can’t use it to pay for things. If you’re a compulsive spender, then saving will help you calm your recklessness.
To help you buy a house
Renting a house shouldn’t be a full-time thing. We all need to rent at some point, but there comes a time where you have to look at buying a home. With your money tied up in property, it provides you with a safe investment. Plus, you no longer have to pay rent every month. I know, you’ll need a mortgage, so you’ll have to pay that back. But, it’s better to pay your mortgage off than to pay rent – which is basically paying for someone else’s mortgage! The only way you’ll ever be able to buy a house is if you save money. You need to save for the downpayment, which helps you secure your mortgage. So, if you have dreams of owning a home; you better start saving.
To help in emergencies
Sometimes, things happen when we don’t plan them. You were out driving your car, and you suddenly got in an accident. The insurance covered some of the costs, but you still have a lot to pay. Thankfully, if you saved money, then you have some spare cash to help in this emergency. If you didn’t have any savings to call upon, then you’d be in a tricky situation and would probably have to turn to a loan. As such, this brings me nicely onto my next point…
To avoid loans and the debt that comes with them
Some loans can be useful – mainly a mortgage – but most of them are best avoided. It’s not a good idea to get in the habit of taking out loans whenever you need money. Why do you even need a loan, to begin with? It’s probably because your spending habits have gotten out of control, and you need some cash to pay your bills. Well, if you start saving money, then this isn’t a problem. Not only do you calm your spending, but you also have money to help pay for things when your bank balance gets too low. So, you avoid loans and avoid ending up in debt.
For a better future
By putting aside some money now, you can plan for a better tomorrow. What will you do when you retire from work if you have no money saved up? A pension from your work will help, but you need your savings to feel more secure. You won’t have to worry about money issues in the future if you’ve already got some cash stockpiled and waiting for you.
For your children’s future
If you won’t save for your future, then what about your children? When you save money, you build up finances that your children can call upon when they’re ready. You start them off with their own savings accounts, so they’re not always struggling for money during their teenage years. Even your own savings will help your kids as well. If you plan on making a will, then you can set terms that allow your children to have access to all the money you saved. So, you help them have a brighter future even when you’re no longer around.
Avoid missing bills payments
If you’ve got some savings stored away, then it helps you avoid instances where you miss bill payments. This often happens when you don’t have enough money in your current account, so you miss the payment date. Now, thanks to your lovely savings account, you can dip into it to cover yourself. As such, you’ll never have to worry about missing a bill payment ever again.
For financial freedom
Being financially free is this idea that you can do whatever you want with your money. You aren’t forced into making decisions; you can do what you want when you want. If you save money, you gain this financial freedom because you start generating a nice fund of cash. Now, you can choose whether or not you want to go travel the world, invest in some stocks, buy a new car, etc. If you aren’t saving, you don’t get this freedom. You don’t have money built up to fall back on, which means you’re restricted in what you can do.
So you can quit your job
Are you sick and tired of working for a terrible boss that pays you even worse than they treat you? Sadly, a lot of people are stuck in a situation like this. They’re too scared of quitting their job because they need the income. The job market is a very competitive place; it can be months before you get another role! Well, if you’ve been saving money, then you should have a nice fund to help you while you look for work. As such, you can quit your terrible job and work on finding a new one. It can free you from your horrible 9-5 and let you experience a new career that inspires you.
The moral of the story is that you need to start saving money. It provides you with this added layer of protection, while also giving you the freedom to afford nice things. Saving money sets you and your family up for a better future – start doing it right now!