Saving money is quite a simple process but at the same time, it is difficult to follow through. The most common trap that prevents most people from saving is that they think they can just make more money. Of course this is true, but there are no careers that provide the exact income you need at the present time. What you make is not based off of need; it is based off of time and effort. This is where becomes most important to save money rather than make money.
In other words, you have control over what you save but you don’t have exact control over what you make. There are limits. It is also safe to say that money saved works for you rather than making money, where you have to work for it. But beside the views of control and energy consumption, there is an entire other aspect to the importance of saving money rather than making it and that is best and worst case scenarios.
We can assume that the greatest highlights and the worst of tragedies in life involve and are often based on money situations. A positive highlight would be having money to take a trip to Paris and a negative circumstance would be that you car is totaled and you have a higher insurance bill and have to buy a new car. The best of moments require money and having money sure helps during the worst of times. It does not end there though, there are more insights on best and worst case scenarios. The following are 8 of the most important reasons to save money.
8 Most Important Reasons to Save Money
1. Life’s worst and most complicated times to get through are when you are stressed beyond limits. By having money saved you are immediately relieving yourself of any mental stress that was being created by the lack of money. In addition, you are preventing that stress from occurring again. With enough money saved up, you will not only have less stress but also feel at ease, feel comfortable and happy with your monetary status. It is not only the lack of money that creates the stress but also the work you have to do to get the money you want adds to the stress level. Save money to prevent financial stress from entering your life.
2. There are a lot of moments in life when you will get pushed down or fall over, but nothing takes as much time to recover from as an economic fallout. By saving money you are creating a safety net for any emergencies that may occur. While the recommendation is to have saved three to six months of income for an emergency fund, any amount would be beneficial. You can’t use the idea that you will make more money as a safety net unless you want to work for the rest of your life. Especially if the emergency puts you out of work, what do you do now? Having money saved is the best measure you can take to steadily make it through any emergency.
3. Do you plan on working until you die? Even if you wanted to, there comes a point where your body begins to slowly shut down. This is otherwise known as retirement. After a life filled with work, everyone deserves to have peace of mind and a period of life that is full of relaxation. Without any savings, the likelihood of you retiring with enough years to enjoy it is very improbable. Especially since reliance on other options for retirement is slowly decreasing, you are becoming responsible for saving money to retire.
4. There is a beautiful concept out in the world that each family generation get’s brighter, stronger and more intellectual. The reason for it is that the youngest generation of the family often gets monetary help. Since education costs money, it seems logical to begin creating a college fund for your kids or grandchildren. While love and nurturing provides positive nourishment to the family, a lump sum of money to help put them through school is just as beneficial. By saving money for the next generation of family members, you are assuring the success of those closest to you.
5. For some, creating a business or investing in other businesses is a huge dream. To do either one while at the same time working enough to pay for it is nearly impossible. You have to have the mindset to work and specifically save now to play later. Big investments like creating your own business can cost an enormous amount of money that to be able to follow all the way through with it you will need to have money saved for it.
6. The same “play later” attitude involves vacations, luxuries and gadgets. It’s easy to spend money on the latest trend, it’s much harder to save for big road trips and bigger material purchases. Yet the biggest purchases often reflect the best and brightest highlights of our lives. Unless you have a job that you can work and travel, saving is now is your best advantage in being able to travel and buy luxurious items.
7. Having money saved works for you. Money in the bank is not getting taxed and you don’t have to pay to save it, it actually pays you in interest. Think about the excess amounts of money you lose when you make money, which is taxed and when you spend money, which is taxed. By focusing on making money, you are paying the interest rates, but if you choose to save, the interest rates pay you. In addition, by starting to save early, you will quickly reach a high enough amount to invest in stocks, CD’s, money markets or bonds that will earn you much more interest than you would receive if you left it in the savings account.
8. This last reason why saving money is important is purely related to a human trait. Having money saved earns you respect. If you told someone that you had even $5,000 saved in the bank at the moment, they would be extremely impressed. Saving money earns you a large amount of credibility. The mindset, skills and overall willpower it takes to do it are characteristics rarely attributed to an average person. It is a rare form of maturity and often attracts the eyes of people who can positively influence your life and help you achieve your dreams.
In essence, it’s all a matter of perspective. The two options are to have money that is in your bank now or it is money that still needs to be made. Saving money is as important now as it is for 20 years from now since it offers you peace of mind and a feeling of pure financial security. If you love to spend money, think of spending money on yourself by paying your savings account a 10% cut from every pay check. You don’t want to end up spending your lifetime working to make enough money for something or to pay off debt. Save now to prosper now and later.