There are still many people who don’t strive to build a savings fund. Perhaps they lack foresight on how it is important to have one. Or perhaps they’re just more motivated to spend or invest their money on other things.
Spending and investing are two things people would like to learn on how to be efficient with. But what they don’t realize is that saving is actually also a form of both. Your savings should be the first thing for you to spend your paycheck with and you’ll need to grow it like an investment. Out of all the things you’ll be using your money with, your savings is actually the most tangible thing that you’ll have in times of needs and wants.
Saving regularly can gradually become a habit. Including it in your lifestyle also makes it your first line of insurance and protection.
Here’s why you need to save
- Having enough saved money reduces your stress.
We constantly worry about the future and think about what problems might come our way. Most of the times, these future problems will have something to do with money. Let’s say your cellphone breaks. You’ll definitely need money to buy a new one and borrowing money or using your credit card isn’t the best way to get a new phone. Having the ability to take care of these things with your savings is a huge stress reliever.
- More savings means more freedom.
Everybody wants a flexible lifestyle where life and work is also balanced. Not having the budget to do what you want is like being imprisoned at home. You just won’t be able to go out. To compensate for that, you’ll end up working overtime or work side-gigs just to earn extra cash for that hobby you desire.
- Your “investment” will take a long time before it profits.
Perhaps you’ve taken the smart path of investing. But understand that investments can take a long time to produce any amount of income. So make sure you don’t use your investments as an excuse to splurge your money on things.
- Being financially healthy lifts your self-esteem.
Confidence is important in our day-to-day lives. How we look at ourselves can define the outcome of opportunities that can come our way. Being able to tell yourself “I can afford it”, even though you don’t plan on buying anything, is a huge boost on morale and that positive attitude can have a huge impact on your path to success.
- It prepares you for the worse.
Life is tough and there’s no way around this. Murphy’s Law states that “whatever can go wrong, will go wrong”. The faster you can get yourself out of a problem, the better. Your savings can be a life-saver.
Tips: Try some of our suggestions on how you can manage your budget to save more money.