5 Reasons to Start Saving Money
If you’re interested in getting started with savings or want to save more, here are five reasons to help keep you motivated.
1. You’ll Be Prepared for Emergencies
Here’s an alarming fact: most Americans don’t have enough money saved to cover even relatively small unexpected expenses. Without cash on hand to cover these irregular but inevitable costs, you’re more likely to turn to credit cards or loans when the need arises. Plus, the more debt you have, the more difficult it is to save. The result? A downward financial spiral that can be difficult to pull yourself out of.
2. You’ll Be More Independent
With a healthy amount of savings, you can feel more free to take risks, like starting your own business, heading back to school to train for a new career, purchasing a home of your own, or moving to a new city. Plus, without savings, you’re living on the financial edge.
3. You’ll Be Able to Reach Your Goals
We all have goals. Maybe you simply want to enjoy a comfortable retirement one day. Or perhaps you’re dreaming of a second home by the lake, sending your kids to college, or starting your own business. Whatever your dreams, they likely have one thing in common — they probably require some money to become a reality. Few of those dreams are achievable if you don’t save for them.
4. You’ll Be Able to Earn More Money
Saving isn’t just about setting aside what you’ve already earned. It’s also about putting your money to work for you. Depending on where you save and invest your money, you can earn more just by being diligent about saving. Because of the power of compounding earnings, even relatively small amounts can grow significantly, provided you don’t touch your principal.
5. You’ll Be Happier
Money isn’t the only thing that can make us happy. But there’s evidence that saving money, even in small amounts, can make us happier. In contrast, having debt (often a consequence of a lack of savings) tends to lead to unhappiness.
Copyright © 2020 This article is published in its original form from its original publication with Investment Answers and Integrated Concepts, a separate, non-affiliated business entity. The original newsletter publication, Investment Answers Financial Success Winter 2020, is intended to offer factual and up-to-date information on the subjects discussed but should not be regarded as a complete, evolving, or personalized analysis of the topics, and should not be construed as personalized investment advice. Qualified financial professionals should be consulted before implementing a personalized financial plan. Please reference the original publication for additional disclaimers.