We are often told that spending money is something we should all be doing more of, and of course, we will be trying extremely hard to do it. Yet we might also question just what this saved money is for. Having a goal and knowing why you are putting money to one side is much more motivation than saving for no particular reason, and it also means that you will be less likely to dip into those savings for something else when you are on your way to reaching your goal. Here are some excellent reasons for saving money; is your reason among them?
A Stress-Free Retirement
No one wants to have too much stress in their lives, especially once they finish working and are retired. Yet not having enough money to pay the bills or to enjoy that retirement once it comes is going to be stressful, and could cause you lots of health issues as well as take away your happiness.
If you are able to save throughout your life and put away a little something each week or month to fund your retirement, you will make it much easier on yourself. The earlier you start to save, the less you’ll need to put away each time, meaning that you won’t even miss the money even though it is all adding up nicely for when you finish work.
Having a great education is important for your future. It’s a fact that the more educated you are, the better job you can get, and the better job you can get, the more money you will earn. Therefore, it makes sense to save money so that you can go to school and earn a degree that will help you get farther in life. This could mean putting off college and working until you have the money to fund it, but if you do the calculations, you’ll see that it is worth it in the end.
Alternatively, you might already have a degree, but you want something more such as a Master’s or a Ph.D. This can improve your earning potential even more, and you will soon make back the money you spent on your education, enabling you to save up for a better future once again.
If you’ve ever been in a position where you needed to spend money on something in an emergency but didn’t have the funds to do it, you’ll know just what an awful experience that is. It could be anything from your car breaking down to your hot water not working to needing to visit a relative in hospital but not having the money for gas. Emergencies can happen at any time, and some of them require money to deal with effectively.
If you have savings, you can use them to pay for emergencies when they come up, saving you any trauma. You won’t have to miss out on anything, can get important pieces of equipment fixed, and you won’t have to use money that should be paying bills or rent to do so. This will keep you much calmer in a difficult situation and stop it from becoming even more stressful than it should be.
To Give You Choice
If you have no savings, you also are limiting the choices you can make in life. You might have the chance at a new career, but it would involve paying for training, or a new job might mean you have to move. Without money in savings for expenses such as these, you will miss out on opportunities and effectively have no choices. You will have to stay doing exactly what you are doing right now if you have no savings because you can’t do anything else.
The chances that you bypass due to not having the finances to do them might be something you would have said no to anyway, but equally, they might not. They might have been exactly the opportunity you have been waiting for; only you can’t go for it even though you desperately want to.
It’s good to save as we have established, but saving all the time and not allowing yourself any treats and special presents is not so good – you could find that you become bored of saving and are keen to spend everything because you have denied yourself for so long. It’s the same as denying yourself a certain type of food; once you stop having it, you want it more and can binge on it making yourself sick.
Therefore, to stop from spending everything in one shopping trip splurge, and to remind you of the nice things you are saving up for, giving yourself a treat once in a while using your savings (some of them, anyway) can be a wonderful idea. Buy yourself something you love that can also remind you of the benefits of saving. It could be a piece of clothing, some boots, a book you have been longing for, or a meal out with a loved one. No matter what you want, you can search online to check it out!
When you are able to invest your savings, you can give yourself an added income stream as long as you are careful and know that your investments might lose money too. Investing is something that you need to be patient about, as a good return can take a long time to come. However, if you are saving anyway, this can be a good way to make your money go further.
Investments aren’t all about stocks and shares and precious metals, of course. Buying a property is an investment too, and your goal might be to save up so that you have the money to buy somewhere, but also to grow your savings at the same time.
To Pay Off Debt
We can all get into debt very easily, but getting out again is something that is much harder and takes a lot longer. It can be extremely stressful to live with a huge amount of debt, putting a strain on relationships, your health, and your life in general.
If you have debt and you put as much money aside as possible to pay it off, you will reduce it much more quickly. Not only that, but once the debt is paid, you can then continue to save the money because you won’t miss it, and your savings will become much larger.