You don’t have to be thrifty for saving money. You can cut down your luxury spending. You should enjoy the journey of saving and investing. Starting to save early puts time on your side. So, here is a list of ten reasons why savings are important.
1. Health Depends on It.
There’s a huge connection between mental health and money. The importance of savings and having less or no debt is so big that it can affect your health. Do you really want to spend your life stressed about money every single day?
2. Helps as Emergency.
It’s unrealistic that throughout life, there will be no emergencies. Seriously, is money the last thing you need to be worrying about in an emergency? Many a times that’s wrong, think about it.
3. Save for Retirement.
And this is the future you want to save for. Because who wants to be old and incapable and have no money? Having a decent level of savings for a time when you go well over the hill means you’ll have funds to get some quality support and care.
4. To Pursue Your Dream career.
Have you ever known somebody that was stuck in a job they hate, because they didn’t have the financial freedom to quit and pursue something they enjoy? Well, if they had enough savings, I’m willing to bet that wouldn’t be the case.
5. Big Purchases.
Your savings account isn’t only for things you need, it can be for things you want too. Saving up for a big purchase means you won’t pay extra in finance costs such as interest and fees, the way you would if you put these purchases on credit.
6. Financial Independence.
To wake up in the morning and feel like you have options. To feel free as to whether you have to travel or stay at home, got to job or to play. Saving enough money to live a lifestyle that gives you a sense of freedom is a reason in itself to start saving.
7. To Make Better Decisions.
If you don’t have any money saved, you would probably choose to borrow money from a friend, or You might also consider a paycheck advance, which charges a lot of interest. None of these options are good for your financial health.
8. Save Money for Home.
It’s a dream many have, to own their own home. I have to say, there’s no greater feeling that buying your own place and calling it home. Buying a house at the right time can be one of the best decisions you’ll ever make, particularly if it goes up in value.
9. You Can Take Calculated Risks.
Part of the importance of saving money is to build cash reserves so you can take calculated risks with less worry. When you have savings, you can explore new opportunities, even if they may temporarily impact your earnings or life.
10. Helping Others.
You’ll have more to spend, save and give. You can help others financially, helping a family member in need or giving really big tips at restaurants. It’s fun to surprise others with generosity and give back to causes that you care about.
“Do not save what is left after spending, instead spend what is left after saving.”Warren Buffet.