Today we are talking about why it’s important to save money and start investing in your future.
Saving money is important for so many reasons.
It’s one of the fundamental components of financial security.
Having a savings in place allows you freedoms you wouldn’t otherwise have.
It’s biggest benefit is peace of mind.
Take a look below for a more in-depth look at why it’s important and beneficial to focus on saving.
Safeguard the Future
Life is incredibly unpredictable.
No matter how great your job is or how much you make, things happen.
In our area for example, a hurricane happened in 2008.
It was so major that the hospital in the area, also my place of employment had enough damage that they decided to shut it down.
And this wasn’t a small hospital either.
It’s a very large establishment which employed nearly 1000 nurses along with 1000’s of other positions.
Nearly everyone was laid off.
They later decided to reopen, but that’s not the point here.
The point is you cannot possibly predict what will happen to your financial situation.
The safest bet is to have an emergency savings account in place.
Having a chunk of cash you can access in a bad situation is one of the best ways to safeguard yourself and your family.
Putting money into a savings account makes your money work for you by earning interest.
Ideally, you’d open up a savings account and invest your money, to get the highest rates for your money, like a roth IRA or 401k.
Even if you just start of with a basic savings account, it’ll still earn a small amount of interest.
Simply keeping your money in a savings account can help you refrain from spending it, while gaining small amounts of interest over time.
Avoid Consumer Debt
If you have a savings put aside, you’re in a good position in case an emergency or other issue requiring a good chunk of money should arise.
Those without savings have to scramble to pull together funds.
Often, this requires putting a bill or expense on a credit card or getting a personal loan.
This type of activity costs you interest in the long run and could be avoided by keeping a savings account handy.
It’s important to bear in mind that you may also need to make more money in order to keep up with debt.
Falling into debt can be a real trap that’s better to avoid if possible.
Meet a Purpose
Maybe you want to save for a particular purpose such as a family vacation or a down payment on a home.
You can easily set up a separate account for this need.
Putting money aside for something special can be motivating.
As you see the amount increase, you’ll get excited to add to the pot.
Before you know it, you’ll have reached your savings goal and will be able to meet more of your life’s goals than you could without saving.
Setting up a savings is quite easy.
Most banks offer a number of options such as low deposits, automatic deposits or linking to checking accounts.
You also have the benefit of easily withdrawing your money should you need it in an emergency.
Accessing investment funds can be a bit more complicated.
Just be careful you only take money out for emergencies or other necessary reasons, as it can be tempting to take a little here or there for impulse purchases.
Saving money is always a good idea.
Just these simple reasons alone should provide you with the incentive to open a savings account and get started.
You won’t regret having at least one savings account set aside for a rainy day.
You may even find yourself motivated to save more once you start socking funds away.
It’s awfully fun to see your saving s grow!