From the day you start working to the day you retire, it’s always important to save your money. Saving will not only help you in case of an emergency but it will also allow you to buy big-ticket items and reduce your stress. If you don’t currently save, it’s not too late to start. If you try to save 5% of your monthly payment each month after a year you will see a big difference. Below are four reasons saving is so important.
In case Of An Emergency
Sometimes costly things happen, especially when you least expect them to. By having money in your bank saved, you can reduce the financial burden of an emergency knowing you have the cash in the bank. For example, it may be that something breaks within your household that needs fixing, or it could be that you need the money for bail bonds to help a family member – here are some frequently asked questions about bail bonds. You never know what’s around the corner which is why having savings can reduce the stress of something unexpected.
Purchase Big Ticket Items
A new house? A new car or maybe you need an expensive laptop for your business? By having savings in the bank you know you can purchase it without having to stress about spending too much money. If you don’t have savings you could be tempted into putting them on a credit card which could lead to you being in debt and having to pay it off over the years. If you want to earn some extra income so that you can save more, you could look to take part in paid surveys.
Reduce Your Stress
We touch on it above but your financial position can lead to a lot of stress. The best way to reduce this stress is to be in a good financial position and have savings in your bank. The more you have saved the better off you can be in the long run. If you can set up a direct debit and save a certain amount each month. After a year you will be surprised at how much you can save. There are many apps that you can use to track your finances and keep an eye on how much you have saved.
At a certain age, you will want to come to the stage of retirement. The average age for retirement in the US is currently 68 which is the age that many people aim to retire at (even earlier if possible). By saving your money regularly, you will be able to put yourself in a better position to retire earlier. Without savings, you may need to work for many more years to live the lifestyle you live when you are retired.
What are the reasons that you save money? Have you got any points to add to the above? Has your savings recently come in useful for you? Let us know in the comment box below.