4 Important Reasons to Help You Start Saving Money

Importance of Savings

63% Of Americans don’t have enough savings to cover a $500 emergency (Jan 2016, from Forbes). This stat is nerve racking to me. If someone doesn’t have enough money to cover only $500 worth, that means there must be a lot of Americans worrying about money, living paycheck to paycheck or in a lot of unnecessary debt.

A few years ago I had to buy a new furnace and air conditioner for my home. If I didn’t have my savings built up I would have put them on a credit card and had to pay interest on them. I was so glad I had a savings so I could purchase them outright and not have to worry about how I would pay for them.

I don’t want you to be part of the 63%, so let’s understand the importance of savings. If we don’t know why it’s important we are more likely not to start saving.

There’s four important reasons for having a savings.

Savings Reason #1 – Reduce Worry

Reduces worry about money. If we are worrying about not having enough money to cover our basic expenses, let alone when an emergency happens, that causes a lot of stress. It’s not just stress on you, but those that around you as well, like family members and friends.

If we are stressed about money, it shows in other aspects of our lives. We may not be able to let others enjoy their money. We may be jealous or envious and begin to spite people that are wealthier than us. We may not be able to enjoy the things we have purchased because we could be feeling guilty about buying the items because we know we didn’t have enough money to purchase them in the first place. It’s harder to relax and be in the moment because we are so worried about something going wrong with our car or house and we won’t have money to fix it.

By having a savings, we can have peace of mind around money because we won’t be constantly worrying about how we will pay for things.

Savings Reason #2 – Be Happier

We will be a happier person overall. If we are saving our money, we can relax about unexpected emergencies. We can also be looking forward to whatever it is we are saving for, even if it is just an emergency fund. It’ll be nice to not have to worry about paying for something that’s broken or needs to replaced, like something with our car.

Once we have an emergency fund, we can save for something else, like a vacation we’ve been wanting to take or a down payment on a house. It’s brightens the spirit to have something to look forward to.

Savings Reason #3 – Saves You Money

If we are saving for something we are less likely to make an impulse buy. We can remember our savings goal and think twice about making an unnecessary purchase. We’ll realize we can put that money toward our savings goal instead.

Also, we can save money in the long run because we are saving up for something, instead of just putting it on our credit card and paying interest for it. The credit card interest can add up quickly. We can also shop around for the best price since we are saving up for it.

Savings Reason #4 – Financial Independence

By having savings, we can get on the track of financial independence. If there’s nothing in savings and we are living paycheck to paycheck or in debt then we are a slave to our money – there’s no financial independence.

We can switch that around by having savings. If we have money put aside, we can take that vacation we desire or buy a house. We can take control of our money instead of our money controlling us. We will have the independence to do what we want when we want without relying on a paycheck to come.

I hope these reasons help you want to get started saving money or increase what you already are saving. There’s many other great reasons for having savings, share your favorite reason in the comments below.

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