10 Key Reasons Why You Should Start Saving Money
In the recent business parlance, an emphasis is always placed on investment. You will always be told that investing is the key to financial freedom. That is very true. You need to start investing a lot. But I have got a question for you, how do you invest what you don’t have? This is why you should start saving money today.
If I save my money, then I will have the money to invest. There are so many ways to save money but I can tell you that there is really no best way to save money fast. These things are individual specific.
Related: The best ways to start forex trading investment in Nigeria
You can consider so many things under “saving money” and its rationale. You can look at the importance of saving money for the future, importance of saving money for students, benefits of saving money and other related issues.
In this article, we want to look at some very important reasons why you should start saving money. In our subsequent works, we will show you how to really save your money. We may even have something for you soon so that you can easily save your money and make interest from it.
Reasons Why You Should Start Saving Money
-
Saving money creates financial independence
If you really want financial independence, you must necessarily start saving money. When you save money, you will have some money to cover some expenditure in the future. You will find out that there is absolutely no reason to depend on someone else.
Believe me, it is a real pain the ass to depend on someone else for your finances especially when you do not work for it. To avoid such incidences that will hurt your ego and pride and put you into psychological trauma, you should start saving today.
-
Emergency
When I was young, my mother always tells me one Igbo proverb that translates literally to a bird that makes its bird when it wants to lay eggs. She always tells me this proverb when I fail to plan.
Related: How to properly manage and save your money like the rich
You see, you don’t start digging a well when you are thirsty. There is such a thing as unexpected contingency or emergency and you need to be ready for it. The only way to be ready for it is to save. Here, we are concerned with financial emergencies.
You can set up an emergency fund. It can be used to cover the cost of any unexpected occurrences and you will be glad. This is one of the reasons why you should start saving money today.
-
Save to make important capital purchases
At different points in our lives, we will feel the need to make certain purchases. We would want to buy a car, a landed property or a land and this will require money. Most times, it is not advisable to get these items listed above with borrowed money. It doesn’t show prudence.
This is one of the reasons you should start saving money. You could save up to get this item. It might take more time to get the money needed by saving but you will eventually. At least, you won’t have the burden of paying back.
-
Save Money to Start Your Own Business
One of the sources of money for starting a business is personal income. Savings are a crucial to your personal income. When you need to start a business, you could provide the initial capital or part of the initial capital and you will be on. You can create opportunities with your savings. You only need to look at successful entrepreneurs and you will understand how important savings can be.
-
Save money for academics
Academics can be costly. You will need to have enough money to see yourself through and one of the ways to get money for that is through savings. You may want to complete your university undergraduate education, go for your master’s degree and doctorate degree.
This will be necessary if you are academically inclined. You will get money to sort yourself out from money saved.
-
Savings can help you when an opportunity opens up
Life is all about opportunities. You can get many opportunities in life and the truth is that you can lose all the opportunities if you are not prepared for it. But with savings, you can always be prepared for every opportunity when it comes knocking on your door.
-
Savings prepares you for retirement
It is in your best interest to understand that you are not going to be working forever. This is why you should start saving money now. Retirement must come to you whether you have your own business or you are working for someone else.
Therefore, you should save to be ready to live out your in retirement with little or no financial constraint.
-
Get out of debt
You must get into debt as far as you are alive. Everybody borrows at one point or the other. Any money borrowed has to be paid back eventually. To do that, you will need to have a plan. One of the ways to raise money to offset a debt is to save.
-
Savings can get you a good life and make you feel good
There is always this joy you have when you have enough money saved somewhere. It brings with this feel-good feeling and it makes you have a great life. Investing will bring financial freedom and success but savings will enable you to invest.
-
You Can Give to Others
On the altruistic plane, you can use savings for lots of things. You can help humanity and you can help those in needs. Apart from those in needs, you can use your savings to help the world become better by investing in charity works and other related issues. To a good number of people, giving brings a good feeling and if you are one of such people, you can give by saving a part of your money.
There are so many reasons why you should start saving money. Some are business oriented and others are personal-life oriented. Either way, you need to save to have money for the things you would want to do or achieve.
