SAVE it for later! 3 reasons why you should save up.
More than half of Americans are falling behind on retirement savings, and 21% are not saving at all.
The significance of saving money is rarely contested. Saving is one of the most basic (and frequently repeated) pieces of financial advice. Despite the importance of saving money, many of us fail to implement it. When it comes to doing the right thing financially, just knowing you should save isn’t enough. 1. Saving can provide you with financial independence.
It can be difficult to allocate some of your money to a savings account if you don't have a specific goal in mind for that money. Why save for later when you can spend it on what you want now? However, one of the many reasons to save money is that even if you don't know what you're saving for right now, you'll almost certainly find something you'd like to save for in the future. A new car, a new home, a child's education... the options are limitless. Furthermore, it is critical to have some money set aside for emergencies and unexpected expenses as they arise.
2.Saving ensures financial security.
Sunny days are ideal for putting money aside for a rainy day.
Create a no-minimum-balance emergency fund.
"I love saving money because it means financial security," says Kara Perez, founder of a financial education company aimed at empowering women by providing them with the tools and education they need to achieve their financial goals.
"Having money, plain and simple, makes your life easier," Perez says. “I save because I want my future self to have the same great lifestyle I have now, and I don’t want to get caught in a financial emergency.”
3. Having savings allows you to take calculated risks.
Saving money helps you build cash reserves, which allows you to take calculated risks with less worry. If you don't have any savings, it may be more difficult to pursue certain interests. Consider the process of starting a business. You'll need financial backing to get your small business off the ground.
Why should you save money?
The importance of saving money is straightforward: it allows you to live a more secure life. If you have money set aside for emergencies, you have a safety net in case something unexpected happens. You may also be able to take risks or try new things if you have savings set aside for discretionary expenses. Aren't there some compelling reasons to save money?
It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for. — Robert Kiyosaki
Paavan Kotini, CEO & Principal Advisor
Kotini & Kotini