Benefits of Saving Money – Why Saving Money is Important
We have felt the various benefits of saving money again and again and over again within the final ten years.
Young woman smiling with piggy financial institution, textual content overlay “what’s the importance of saving money?”
As my husband and I actually have jumped from Estate Agents Hove sudden payments to unexpected opportunities, our savings account has been a consistent in our lives, making sure we haven’t had to ask our family or friends for cash.
Us prioritizing saving cash on the grounds that transferring out of our figure’s houses (and even at the same time as residing in their houses) has brought us a lot comfort and goodness in our lives, that I need to proportion with you all of the advantages you’ll get with the aid of saving your personal cash.
What is the Importance of Saving Money?
The number one maximum essential motive for saving cash is because you’re building an coverage policy for yourself in opposition to lifestyles’s mishaps.
Life is going to throw you all forms of curveballs.
And whilst we’d all want to just sit and watch our savings emerge as used at some point for the matters and stories we want to be/do/have, the reality is, we’re going to want it for all sorts of unforeseen events.
This has happened time and time again in our personal lives.
In a nutshell, over the last 10 years, we have:
Been laid off four times (two times each — a nice balance!).
Had our beater automobile die one month after plunking maximum of our financial savings down for a down payment on our home.
Paid out $10,000+ medical bills for our son’s delivery + my 6-day re-admittance to the health center because of headaches (and that’s AFTER my husband’s health insurance paid the doc + affected person claims out).
Were sent to collections for a $1,097 scientific invoice we did not owe, and had to combat for SEVEN MONTHS to get out from it (simply this 12 months). FYI it was a preventative checkup appt…which can be one hundred% included beneath the Affordable Care Act.
Had our identification stolen and numerous thousand greenbacks siphoned off.
I should pass on…but I’ll just quit it there.
Did we count on ANY of these items to manifest? Nope.
Were we RELIEVED that we had cash in our financial savings account to apply to get us thru? You guess.
If all of these things can manifest to a geeky money nerd, like myself, then they could actually take place to you.
What are the Advantages of Saving Money?
We’re moving onto greener pastures now via talking about the blessings of saving cash to get you pumped approximately doing it.
You aren’t only constructing a savings account with the aid of saving cash, you are also constructing benefits that different those who do now not store money will now not have.
Kissing the debt cycle goodbye: If you get into the addiction of saving up cash for the belongings you want to do in lifestyles, then you’ll kick the debt cycle to the slash. It’s an exquisite thing. My husband and I paid off all our debt (besides the loan) returned in 2010. Since then, we’ve paid coins for everything, which includes a cruise to Alaska, a honeymoon to Austria, a new relevant A/C unit + furnace, a used automobile (at sixty six,000 miles), and so on. All of that is feasible for you, too.
Not having to invite your dad and mom/friends/family for money: Do you understand how liberating it’s far when you don’t have to turn to others to get your economic wishes taken cared of? And if you don’t have everybody you could turn to for assist, then this one is even extra critical for you! When you ask others to spend their money that will help you, you convert your courting with them. It can flip out, well, now not so desirable. Instead, bail yourself out the subsequent time you want it the use of your financial savings.
Getting to Design Your Life: Have you ever heard of Lifestyle Design? It’s a pretty cool concept added with the aid of Tim Ferriss in his ebook, The four-Hour Work Week. It’s basically you taking the reins of your life and designing it to be the way you need it to be. Doing “loopy” such things as taking mini-retirements, having one character live home to elevate a baby, touring the sector, and quitting your process to start up a commercial enterprise. Do you already know what will help make your life-style design a reality? Having an emergency financial savings fund to lower back you up.
Getting to Retire: You probably want to retire someday. And by using “retire”, I mean any wide variety of things – like work on a ardour project, tour to places you’ve desired to go, taking up a job you’ve usually desired to do – that aren’t your contemporary reality of the 9-5 process. Saving money (and making an investment it) is the way you’re going to get there.
The truth is, folks that store cash are going to be in lots better positions to make the decisions they need in life NOT primarily based on money on my own, than individuals who do now not.
Is a Savings Account Worth It?
What is one benefit of maintaining money in a savings account, and is it worth it to have a savings account?
I’ll definitely come up with numerous blessings of saving cash in a bank, after which display you why it’s really worth it.
Advantage #1: You earn interest in your money
If your cash is sitting in a mason jar, piggy bank, your pockets, or anyplace else you’ve stashed it through the years, then it’s not incomes you extra cash.
But if it’s in a savings account? Well, then it’s earning hobby.
Here’s an interest calculator you may play with to look how lots your account can earn you money over the subsequent six months, year, ten years, or however long you’d like. Play round with it.
Advantage #2: You guard your cash
Banks are FDIC-insured, as much as $250,000 consistent with account, against a bank going belly-up (and that consists of the greenbacks you install, in addition to any interest you earned at the cash).
On pinnacle of that, putting your money into a financial savings account is a lot more secure than preserving it at domestic. You may want to lose it, you may get it stolen from you, and you could spend it all without a 2nd idea.
Which leads us to advantage #3.
Advantage #3: Makes you observed two times approximately spending it
Since it commonly takes some days to switch your cash from financial savings to a bank account after which withdrawal it, it offers you a “cooling off” duration earlier than you definitely spend it. This is a superb component!
So, is a savings account really worth it? I must suppose so!