It is evident that the benefits of saving money outweighs the instant gratification of spending. If you took a survey of individuals who were caught off guard by financial hardships, divorce or an unexpected job loss, I bet they would admit they should have saved more money. When you know you have your financial needs under control, you tend to enjoy life without worrying. Save little by little and one day you will have saved a big amount. When you reach your thirties, you don’t want to look back and say, “I wish I had done this…”If you’re financially savvy now, you won’t regret it. Job loss is usually traumatic. Having sufficient saving gives you the chance to grab that life turning opportunity. Personal Finance Tips For Young Adults & Millenials. You must make sure you do not end up misusing the savings since your life will turn upside within a couple of months. But there is more to life than just saving for a rainy day, or investing until your net worth is the size of a … Savings are also important to maintain your lifestyle at that time when your bank account will stop getting credited every month. If you have the insight for why saving plays a crucial role in our life, you will start saving willingly. Save for Your Emergency Fund. Side Note: Here at Be The Budget, we strongly believe that you should put your money into a savings account that earns more than a measly few cents of interest each month. That is a lot of debt to work your way out from under. Some expenses in life are such which you just can’t avoid! You don’t have to be thrifty for saving money. Saving money for future is of prime importance as virtually there is nothing tangible that you can have without the exchange of currency. Each year more people end up at... 3. This means that the interest that you’ve built up on your savings will now also be making interest. From having a good life, catering for your annual expenses to buying a home, saving money will help you big time in the future. Saving money. The habit of saving should be ingrained in man but there is more people nowadays squandering money than saving it. These were some of the ways on how to save money for the future, there are multiple benefits of saving money. Saving for the future isn’t easy, especially when you’re dealing with credit card payments, living paycheck to paycheck, and everything else life throws your way.Sometimes, the idea of saving money … If you are prepared beforehand, it will be much less stressful in terms of financial condition. You never know what the future holds so the best decision is to prepare for it financially, physically and mentally as much as possible. If you do not have an emergency fund to rely on, you’ll have to resort to other means, like credit cards to pay for your expenses in the event that you lose your job or are unable to work. Your 20s can definitely be the right time to start saving money. Considering the cost of medical bills, the first goal is to avoid medical problems altogether. Yet, there are some specific benefits to setting aside some money before you spend any – even if you’re on a limited income. Rather than spend that savings elsewhere, take the money usually spent on gas or public transportation and earmark it for a future use. The ideal emergency fund should contain enough money to cover 3 to 6 months worth of your living expenses (including rent, utilities, car payments, etc.). We all wish we were better at it, but most of us simply are not. A good education is an investment for a better future. Top 7 Reasons to Save Your Money. To help get you on the right track, this article will feature plenty of ways (23 to be exact) to save money for the future that you are probably not doing right now. By putting funds away, you'll have more money when you truly need it. The future is full of uncertainties. He values money and believes in saving it. There are seasons when saving even a dime seems nearly impossible. Many people opt to buy cars brand new because they do not want to risk being stuck with a lemon. You never know which unexpected and emergency expenditure will come next knocking at your door. The importance of saving money for the future is simple and the benefits of saving money can’t be denied. That is because money saved now is worth more than money earned in the future. On those rainy days, when there is very little money in your bank account, you need an safety net. When you have health insurance, the cost (minus your deductible) will be covered for you. For most young people, their 20s are a time of self-realization, experimentation and spending! Safety Net. 10 Important Benefits of Saving Money 1. If you need some way to get money, if you lose your job, this safety net will be useful. In this article you will get to know the benefits of saving money but also the disadvantages. In this post, I’m going to take a deeper dive into the importance of saving money, and cover the top 15 reasons to start saving today. You can invest in stocks, real estate, mutual funds, bonds, etc. Let’s take a look at some of the benefits of saving money: Achieving dreams and goals. If your start making wise money choices early in your career, it can set you up for success in your 30s, 40s, 50s and so on. Having a habit of saving will enhance your life by not letting you spend money on reckless things and accumulating it for major expenses like buying a new car or preparing for the wedding, etc. You have nothing to lose by saving - and only a happier future to gain. While this is understandable, buying a new car will ultimately cost you more than the price tag. We save, basically, because we can't predict the future. Retirement is often viewed as an abstract notion that is far off in the future, and immediate needs often seem more pressing, but this should be a priority in your life. Yet many of us have learned the importance of saving money through trial and error, and more importantly, experience. Save for better education Also, a good insurance plan is a must to help you survive unexpected events. You never know what the future holds so the best decision is to prepare for it financially, physically and mentally as much as possible. You should enjoy the journey of saving and investing. I went from a dissatisfied freelance writer to a full-time blogger, course creator and business owner. “You must learn to save first and spend afterwards.” – John Poole. Saving money can help you become financially secure and provide a safety net in case of an emergency. Saving can... 3. Even if you plan to take the student loan, prepaying some part in advance will save you from accumulating hefty interests. If you do not have health insurance, you will be on the hook for paying the balance in its entirety. Financial crisis can lead to a number of other issues like anxiety, insomnia, and even heart problems. benefits of saving money. Everyone wants to retire at some age in life. These methods will offer more return than just saving. It is a time period when you are graduating from college, starting your first professional job, and figuring out what you want to do with your future. A good education is an investment for a better future. If you want to start a profitable blogging business that provides epic value and allows you to live a fearless life, I’m your girl! Never hesitate to negotiate a car purchase to save money. It will help keep you from overspending and you'll ideally be able to put some aside for future expenses if you pay yourself first. When a big expense comes up, it’s always easy to tell yourself, “Oh, I’ll start next month.” However, this is a dangerous game to play. Be sure that you are eating healthy , exercising, avoiding fast food as much as possible, eating nutrient rich foods and maintaining good health. Six Ways to Teach Your Kids About Saving Money. Watch this video on www.MoneyAcademy.co.za, complete a fun quiz, and you could be in the running to win R2 000! You can start today by putting aside a small amount from each pay cheque. Sometimes young people feel as though they’re invincible, but one accident is all that is required to jump start the downward spiral of medical expenses and bills. Rather, avoid such costs which are not really important like reducing the number of dine-outs or movies theatre visits, and always keep the importance of saving money in mind. Saving money is one of the most important aspects of building wealth and having a secure financial foundation.. Hence, saving for the future education of yourself or might be your next generation seems to be smart enough. To live happily and stress-free at that time, you need to start saving today. Having a Safety Net – You need a safety net for rainy days when you will have little in your bank account. When you don’t have a lot of money, making big expenditures can seem foolish, but can it be possible to spend foolishly even on wise things? You don’t have to elope to cut expenses, but you don’t need to spend an arm and a leg to have an unforgettable day. Saving money in painful and unnecessary Quotes: FOR: by Joseph Andrews Saving money brings three benefits to your life. For example, an emergency appendectomy will, on average, cost $43,000.00. If you start planning your retirement fund at an early age, you can retire whenever you wish. Once you have eliminated, if not all, a large chunk of your debt, you should start an emergency fund. Your money works on your behalf so you can work less. You can cut down your luxury spending. “Do not save what is left after spending; instead spend what is left after saving.”- Warren Buffett. Although, some medical conditions are unavoidable, others can be avoided or maintained if you are in good health. Don’t wait to learn about retirement plan in your old age. The importance of saving money for the future is simple and the benefits of saving money can’t be denied. One of the world’s richest man, Warren Buffett is not fond of buying expensive things. Getting married or having kids might be the last thing on your mind right now, but as you get older your priorities might change. It may come as a surprise, but saving money does have it disadvantages in some situations. Yep! A saving account provides you meager interest which couldn’t even pace up with inflation. Saving money has both physical and psychological benefits, so start saving now. The time value of money, compound interest , taxation, and other factors play a key role in this fact. That’s where the importance of saving money comes in. Having a savings buffer in place to help cover your living expenses while you find a new job can provide you with real peace of mind. 3. If you have goals of reaching some college or university, you will also need huge funds. Whether it is leaving your job and starting a new business, leaving work and going back to school to switch careers or investing in someone else’s business, having money in hand gives you confidence and path to move forward. How you save money every month, do let us know in the comment section. Best Real Estate Niches – Lucrative & Profitable Investing Opportunities for 2021. Another benefit is, you will receive lower health and life insurance premiums. food,shelter and clothing. Emergencies are always unexpected. Use these 5 tips to learn how to properly manage your money and to save money. To have a debt free life; Living below your means can give you plenty of room to save. You might get an opportunity to invest in a big project or idea. Save for a Vacation… Financially, this is often one of the most damaging mistakes a person in their 20s can make. Read also: Real Estate as an Income Plan for Retirement. After all, saving is the foundation of your financial future. Helps in emergencies:. When you factor in insurance for a new vehicle and the interest rate of your auto loan, a new car with a $25,000.00 price can cost you upwards of $36,000.00 or more. The sooner you start the better. You will not stress out if there is an emergency because you have money to spend of. Having enough money to invest is adding a source of income. It gives you freedom of choice. Finally, as you begin to save, it spreads like happiness throughout your life FOR: * Limit the stuff you want to buy everyday * Takes a lot of time * … The Importance of Saving Money for Your Future: 7 Reasons to Start Saving Today, Having a habit of saving will enhance your life, Real Estate as an Income Plan for Retirement, How to Harness The Phenomenal Power of Goals, 9 Things You Should Ask Yourself When Buying a Drone, 004: Your Burning Blogging Questions Answered (part 1), The Road to Sustained Business Growth: 6 Strategies to Implement Today, Investment Advice Every 30-Something Needs to Hear, 003: How I Took Massive Action and Made 2020 My Year of Growth, How to Turn an Interest into an Income: 6 Tips for Setting Up a New Side Hustle. It is much easier and more enjoyable to take the income, the money we have earned and worked hard to receive, and spend all of it every month—purchasing … According ... Save for Retirement. The benefits of Saving Money: If you aren't as fortunate that you have so much cash that you can do what you want, saving is a really good option. Find out some of the many benefits of saving your money. It is evident that the benefits of saving money outweighs the instant gratification of spending. Jamie Grill / Getty Images. Learning the importance of saving money for the future and having financial goals is two of the smartest things you can do for your financial financial health. This will prevent certain conditions and issues within your body. It makes saving easier if you have a clear goal or purpose for the money that you are saving. You can also benefit from compound interest as a perk of saving over a longer period of time. 8 Benefits of Saving Money 1. Save for a Down Payment for a House. She is passionate about money savings, investment and finance industry. Savings gives you a way out from the uncertainties of life and provides you an opportunity to enjoy a quality life. 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