Many people don’t start saving until life shows them why it’s important to have some cash in saving.
And honestly, it’s not a very nice way to learn.
The lessons life gives are very eye-opening but harsh as well.
The current ongoing pandemic is the perfect example of why it’s so important to save money. It doesn’t matter how much you earn.
Just save a few cents if not a whole dollar.
“But what will a few cents do to make my life more comfortable?”
Good question. Well, these few cents will dictate how you will lead the rest of your life, help you learn how to save money, and shape your habits so you can make better financial decisions.
Spending money ≠ Happiness
Saving money ≠ Boring
In this guide, We’ll explore all the benefits and understand why it’s recommended you start saving money now.
Benefits of Saving Money
Here are the 7 benefits of saving money you need to know about.
You Can Buy Things You Want
Many times in our lives certain expenditures occur and we aren’t prepared for them. It doesn’t have to be related to your daily life needs.
It could be a handbag or a cool multi-functional watch that’s recently launched.
There are certain times when (no matter how frugal and minimalistic we are) something catches our eye so bad that we can’t resist. And when we aren’t able to buy it, it’s disheartening.
We tend to think, “If only I hadn’t bought that expensive dress that is lying at the back of my wardrobe for God knows how long!”
The number one benefit of saving money is that we have cash saved up in case we really want something. I always save my allowance and only use it when I am sure I want it. But to do that, we need a lot of self-awareness, which most impulse shoppers lack.
Impulse purchasing never yields good results. We all are guilty of buying something we didn’t need to.
But when that becomes a habit, that’s when the problem starts.
What’s better than a comfortable sleep knowing that you are prepared for the next day?
You think the next day is going to be the same as this day. But this couldn’t be far from reality. No one expected this pandemic to happen.
At the very least you didn’t.
And it shouldn’t take a whole pandemic for us to understand that.
Every day countless employees get fired from their jobs for the pettiest of reasons. You might love your job. Even your company might love you too.
But it’s only until they haven’t found someone better than you or until they can’t afford to hire you anymore.
Either way, you can never guarantee that the income stream you currently have will always remain that way. (that’s why it’s so important to have at least one passive income source)
By saving your money, you have a cushion to bear the downfall. A stable future is not a dream anymore when you start saving money.
You Can Retire Soon
The more money you start to save now, the earlier you are going to retire. Your emergency funds will pile up quickly, and your plans and dreams for early retirement won’t be/feel so farfetched anymore.
You’ll be actively working on making your retirement dream come true. Nobody wants to work 9-5 miserably for the next 40+ years.
But certain decisions we take make us stand where we need to bear the consequences.
You might think “Oh, I am way too young to be thinking about that. I still have a whole life ahead of me.”
But you never know what life holds for you. The later you start saving up, the later you are going to retire. That means more work and less enjoyment in life.
Or do you LOVE going to the typical 9-5 job instead of pursuing your passion?
It’s not uncommon for people to work long after the age of retirement, not because they are bored but because they weren’t in the least bit prepared for their retirement at their young age.
Nobody images themselves to be in this place, but because of our actions, we do end up this way.
And you don’t have to.
Happiness Is Free
The best things in life are always and will always be free. They don’t cost a dime.
Kindness, compassion, a warm and friendly smile, a helping hand, and a good time with family and friends; don’t cost a thing monetarily.
Your lunch with your friends doesn’t always have to be eating out; you can cook and have a nice meal with your friends at home.
By cutting out some of the ‘necessary’ expenditures, you could be saving a huge chunk of your income each month.
Re-evaluate your ‘needs’ and ‘wants’.
Look around yourself and see how many things you actually use and how many are lying there taking up space in your house.
Makes You Richer
Nothing is cooler than having some cash saved up in your account.
The safety and security it provides is much cooler than the latest handbag your colleague brought by sucking her bank account dry.
The fact that you can afford to buy anything you want in case you like something is truly uplifting.
A good financial routine makes it easier to maintain a lifestyle that makes you richer as well as makes you feel happy and fulfilled.
Gets You Out Of Rat Race
The most important benefit of saving money is getting out of this futile rat race.
Analyze the things that like and the things you brought just because it was trendy at the time. An idea implanted in your brain by the marketing companies and society.
It’s exhausting to keep up with the latest trends and spend money on things for God knows what reason.
Who are we trying to please? Why is our value depending on the ‘things’ we possess?
Many people are involved in this rat race without ever stopping for a moment to think why exactly they are doing this.
And many of them don’t even have deep enough pockets to fund the lifestyle.
They are buried in debt from head to toe only to ‘look’ rich. You see all these influencers and celebrities on Instagram and Snapchat and compare yourself to these people but why?
You don’t know the reality behind the photos. Maybe they were gifted by their fans or sponsors or friends? Or even if they could afford it who cares!
You need to save money to be rich and secure. These influencers aren’t going to pay your bills or buy you that cute handbag you’ve been eyeing out.
You Will Enjoy Life More With Less
The recent CFPB survey found that about one-third of people ages 30 to 49 had more credit card debt than savings (CFPB, 2017).
Why are we so focused to live BEYOND our means?
People who live frugally aren’t missing out on life despite popular belief. They live like that because they know that most people are searching for happiness in the wrong places.
Binge spending is like a drug. It makes you happy for a short while until the excitement wears off. Then off you go onto another shopping spree.
You don’t need to spend lots of money to enjoy life. Neither do you need to be an extreme cheapskate.
Observe your needs and be the judge.
Are all the things around me making me happy?
Building good financial habits seem challenging at the start but as you go on, it gets easier.
Make small changes. Get yourself addicted to saving money bit by bit. Cut out the daily spending by a few percentages. Make allowance for yourself from your paycheck and stick to it (my personal favorite).
Get your feet firm in the game.
Many times I unintentionally save money from my allowance and when I look back at my account, I still have quite a bit left.
It’s not because I am stingy but since I have everything I need, I don’t feel the need to spend more.
Simple as that.
What are your thoughts? Is it better to save money now? Or is it YOLO?