Most people, unfortunately, do not seem to understand the importance of saving money. They often cite a lame excuse that they earn very little which is not sufficient enough to make two ends meet, let alone saving money for their future needs.
Well, it is true that if you do not earn much you will hardly be able to pay your bills and in such a situation the idea of saving money for your future may seem like a joke to you. However, at the end of the month even if you are left with only $5 it is better to save rather than spend it impulsively.
Saving $5 a month will result in $60 a year and you are surely going to live many, many years more than that. Therefore, saving is all about your outlook and wish with a little bit of mathematics.
Therefore, no matter how much you earn, saving come amount of money is worth the effort. It will provide you with several things such as:
- It will give you peace of mind
- It will give you a lot of options
- It will give you a chance to accumulate additional savings easily.
Therefore, the more you save the better. Everyone and everything has to start at some point or the other and the best time to start is right now, if you have not already. Over the years and if you work at it diligently your financial situation is surely going to improve making you happy and peaceful.
Peace of mind
Peace of mind is something that everybody wants and at all costs. If your financial condition is tight you will lay awake all night or wonder how you are going to pay your rent next week. However, if you earn quite a bit and are a bit further up the financial ladder but do not have any saving then you will be able to pay your monthly bills for a few months after you lose your job for any specific reason.
However, if you do not have any savings you will have a lot to worry about either immediately or after a few months. In the later stages in your life these money thoughts will increase in number keeping you awake for the entire night with more worrying thoughts about your kids’ education or your retirement.
To get the desired peace in mind you can start immediately with these things:
- Stop procrastinating
- Creating and start saving immediately
- Enrolling in a college savings plan and
- Saving for your retirement.
You will see that as funds start to accumulate, your worries and sleepless nights have started to diminish but for that, you will need to make sure that you live within your means. This reduced stress and a happy state of mind will save your energy and allow it to channelize it into more productive and enjoyable thoughts and activities.
Even if you carry some debts in your name which is quite natural in this modern world to sustain, you will have enough confidence to repay it knowing that you have enough money in your savings account. You will not need to look for other alternatives to get rid of your debts such as debt settlement or looking for reliefs from nationaldebtrelief.com or others or even file for bankruptcy in worse case scenarios.
Have alternative options
You will have your options expanded when you save more money. This is because the money in your hand will allow you to control your destiny in a better way. Apart from that, you will have other benefits as well such as:
- You will not reach on the verge of a nervous breakdown
- You will not have to quit from any activity in the middle of the process
- You will not have to look up for a new job often and
- You can take time off to restore your sanity before you have to make any important decisions.
Moreover, if you are compelled to live in an unsafe neighborhood due to your low income and no savings, if you have money in hand you can easily contemplate moving to a better and safer location. This is because your saving habits will enable you to make a down payment or deposit for a better apartment or a nicer home. It will help you to fulfill your dream to buy your own home.
If you face any medical emergency and need expensive healthcare that is not covered by your health insurance, you can use your savings to pay off the medical bills even though you may not be able to work while you are being treated.
That means the knowledge that you have a savings cushion to back you up will add to your peace of mind.
Make money work
It is true that money does not always solve all your problems.
- If you lose a job, it may take a long time to find a new job no matter how hard you try.
- Moreover, there may be a few specific types of illnesses that will not go away even after the best procedures are followed.
- Even if you live in an apparently secure gated complex a random crime can happen anytime.
However, if you have more money in the bank you will give yourself a better chance to come out of these situations unscathed and over the top.
This means you can make money work for you when you save money and stash your hard-earned money in the right places. As time passes by, you will need to work less and less while the saved money will start to work more and more till the time when you stop working altogether.
The final conclusion
You can start saving money in any way you feel like. You can use an online savings account, use your Roth IRA as an emergency fund, or a 401(k) and may even invest in the stock market. Whatever you do just make sure that you do it right and continue doing it.