10 reasons to save money
I have my reasons for saving money but what are yours? If you have come to this blog, it is likely you have some already. However, if you don’t have any yet, or you need a bit of extra motivation to start saving, here are ten good reasons why I think it is helpful to save money.
Note: I am not a financial advisor. This article contains my personal opinions which should not be relied on for financial advice. If you need financial advice over making savings and investments please consult a professional.
If you don’t have any yet, here are ten good reasons why you should save money:
1.Save money to follow your dreams. Maybe your dream is to climb a mountain or start up your own business? Making regular savings over a period of time will help you move in the direction of those goals.
2. It can give you choices. It depends how much you are able to save, but for example; maybe you could choose private tutors or hospitals should you be in a situation where you feel that is necessary.
3. It means you are living within your means. By consistently under spending against your income, you will not get into a situation where you have unmanageable debts.
4. Save money so that you can take time out if needed. If you want to take a career break or reconsider the direction you are going in savings can support that.
5. It can encourage you to think for yourself more. Rather than buying things every time a need arises, take time to think of alternatives to spending money.
6. It acts as a safety net in case of emergency. If your source of income dries up e.g redundancy, you can fall back on your savings for a time.
7. You can be less reliant on others. It may allow you to move out of your parents house. Or you could save up to go on a trip, that your other half doesn’t want to go on.
8. It can lead to financial freedom. Paying off your debts such as student loans or mortgages can be very liberating. By making savings you may find these debts can be paid off earlier than they need to be.
9. It can even out your cash flow. Save a little each month for yearly expenditure. That way when large bills which come in during the year, they won’t affect your cash flow.
10. Savings can support you in your retirement. Having savings in the bank / in a pension scheme will hopefully give you an enjoyable retirement. (Although remember investments can go up and down and I am not a financial advisor.)
How can you save money?
I think it is really important to try and save a little regardless of your income and try and live off less than you earn. Those savings should give you some freedom to make choices, plus you might sleep better at night knowing they are there!
But how can you get started on saving money? Well first you need to know what your financial situation is. What is your income and expenditure? How much is left over at the end of each month if anything? Come and join in with my year of Eco Thrifty Challenges to get a free spending tracker to get you started on that. Find out all about it here: Eco Friendly Money Saving Challenges and once you have read that join the Facebook group here: Eco Thrifty Challenges Facebook Group