Money is a superficial concept. Economists spend years of research and arduous hours trying to find its main work.
They’ve wanted to know how something so manufactured and devoid of anything can hold such a grappling impact in our daily lives.
So much so that we’ve made it our main motive; spending our lives trying to hoard it. Almost as if it’s our second nature at this point to earn and earn and earn.
13 Reasons Why Saving Money is Important
Presenting our bodies to its everlasting demand which never seems to lessen, only growing stronger. With its rising importance, comes the need to save and store it.
Here, I’ll break down a few instances we feel are important causes to save money for.
Ranging from personal investments, entrepreneurship opportunities, and retirement options, sit back as I show you the reasons why you should start spending your next income more wisely.
#1 To Achieve Financial Liberty
The world is a series of unprecedented events. You can’t be sure of anything going on. With all the havoc that one might face, being financially secure helps manage a lot.
Being monetarily independent is a feat everyone strives to achieve. With no restrictions, this poses a way for you to invest or save on the things you prioritize having. Hence, it paves the way for you to get settled into the responsibilities of adulthood with ease.
#2 Tackle Unexpected Events
Firstly, the biggest reason one should keep a few bucks is for those times when we find ourselves in situations we don’t expect to be in.
Be it a medical crisis, a debt to pay off, or just getting a new article of clothing for that one event, we need money for a myriad of reasons.
Money Comes To The Rescue, Always!
Keeping a secret stash of cash for exactly this moment can prove to be very helpful.
It saves you from the hours you may spend worrying about how you’ll manage. Aside from this, you could also be faced with job constrictions or any sort of predicament one might find oneself in.
Oftentimes situations play out in a way where we aren’t even able to comprehend the outcome. So why fret over the unforeseen, instead, be prepared for whatever is to come.
#3 Spend Big On Your Wedding
Hey, it’s the most magical day of your life and you should be in every position to make sure it’s as special as it’s known for. Get those overpriced flower settings, the intricate china and the best, flowy ballroom gown one can find.
For many, spending big on their wedding is a big no-no.
Why? Because unlike every fairytale ever, you aren’t blessed with a fairy godmother to make your enchanting desires come true. This puts you in the impediment of not being able to fully carry out what you had in mind.
Make Your Dream Wedding Turn Into Reality
As soon as you can earn enough to keep yourself afloat, you should seriously start putting away a marriage fund so this is an issue you don’t have to face, ever.
Don’t hold back on spending on the day that matters the most. This event only happens once in a lifetime and you best make sure it’s nothing less than a Pinterest aesthetic.
#4 Go On Vacations
Leisure time is what we all need. It’s a necessity more than it is a need.
An escapade from the grueling office hours, the neverending dishes and not to mention those excruciating calls from your boss, asking you to get that one last file done by midnight.
When all this accumulates and presents itself in the incarnation of your walking pet fears; it’s time to take a break.
A Much Needed Getaway
A getaway is the only reason we even make it this far in our adulthood.
There’s just one minor curb. You could probably sell a kidney in return for a 4 day trip to the Maldives. And it gets you thinking, why are vacations so costly? Maybe it’s the travel fare. Or the neverending inflation percentage.
Whatever the reason is, planning for a nice trip to the Maldives requires months of effort, preparation, and finding the cheapest residence.
This alone should compel you enough to get to start putting a fraction of your income for those times when the real world gets too tough. Instead of fathoming over how the sandy wind would feel against your hair, make sure you can experience it in real-time.
#5 Purchase Luxury Items
Yes — You read that. Spoil yourself in intricate jewels, lather yourself in Prada and Versace and let those elegant, classy looks take over you.
As someone who works restlessly, why not treat yourself with expensive items? Get that Gucci bag and show off your merited income.
This not only gives you an ulterior motive to strive for, ignoring your bosses’ snarky remarks, but it also gives boosts of serotonin from time to time.
Spend On Yourself
When you save just to spend on yourself, you’re more likely to feel less boxed in your budget. Saving seems easier and worthwhile. Most times, we reserve our money for events or situations that are long-term and likely to happen as time progresses.
Buying something lavish for yourself is not only a short-term investment but also results in immediate outcomes.
#6 Buy Yourself a House
Got those luxurious mansions on your list of dream houses to have? Or maybe the highrise penthouses that overlook the city’s horizon?
We all dream of a house we’d wish to own and yeah, real estate can be expensive. By a lot. Like, you cannot even fathom getting a good modern infrastructured house because the prices are off the roof.
But don’t get too disheartened. People do eventually get those same houses and no, you do not need to be a millionaire to afford them.
For many, using a savings account works best to attain their dream house.
What better way to prepare for the future than to retain every fraction of your income for your dream house. It’s right there.
Waiting for you to claim it as yours. Why not make sure to play it smart and get a headstart on your route to mansions and penthouses. This also saves you from the horrid procedures of getting a loan or mortgaging your house.
#7 Minimize Your Financial Risks
Sometimes you find yourself in a seemingly unsolved predicament. A hurdle in your routine that messes with your everyday life. Be it an increment in rent or a spike in petrol prices, this somehow poses an issue you need to resolve.
For such occasions, you find yourself at a dead end. Wondering how you would make ends meet or simply make it through the next day. And it is for these specific times that you should intend on keeping an extra amount saved and ready to be used.
Saving you from the horrible consequences of going into a financial crisis and risk losing much more than just your sanity.
#8 Gain Profits
One of the main advantages of saving money is earning more money. Sounds bizarre when you say it but actually, saving up can help you invest in many stock shares, and in turn you’re able to receive its profit.
Invest In Stocks And More
In the expanding trend of buying a couple of stocks of big corporations, you can expect yourself to make huge bucks and so, make a secondary source of income for yourself. Aside from this, you can also invest in many small businesses as a partner and earn a bit for every milestone they hit.
This would help in other aspects of your life such as saving further to buy more stocks and, help create an effort-free source of income.
Not to mention being a huge lifesaver when you hit old age. Then, you can chill back and let the increasing profits pile up and get you through the last few years of your life with ease.
#9 Retirement Purposes
Once you reach the apex of your work life, you will eventually need to retire and so, you may need to rely mainly on whatever you managed to save from all the years you spent working.
It is old age where all your savings finally pay off. These long office hours salivate off into those peaceful, serene views. To avoid any sort of dependency or burden on a third party, it is better to start keeping a penny of your income safe, now.
So when the time comes, you wouldn’t have to worry about how you would fulfill your expenses.
#10 To Invest In New Opportunities/Ventures
Thinking of kick-starting your entrepreneurship gig? Well, that is a great idea, if not for the tiny obstruction being: where on Earth would you allocate such investment funds?
Getting a loan would be too troublesome; all that paperwork and bank statements can be a nuisance. Oftentimes, being rejected in attaining a loan can also be quite disheartening.
So, what’s the best solution for this?
You start keeping a percentage of your salary for this exact purpose. Don’t cage yourself in being stuck in the employee/employer relationship but instead, you should pursue new ventures and any business desires you feel are profitable.
Try your hardest to expand your horizons and make new roads for earning money easily and cost-effectively.
#11 Support Your Family
The most difficult part of adulthood is when you start your own family. You’re faced with multiple issues and needs that have to be fulfilled.
Other than the regular bills to pay and rent to give, you have to buy toys for your kids, school them, get a better car so everyone can easily adjust, and need a list of other necessities to raise them and meet your spouse’s needs as well.
Education And Other Expenses
And sometimes, this can be a bit onerous. It may so happen that you find it hard to support your family regardless of whether or not your significant other also earns.
Even if you do manage to make it through the elementary and middle school years of your child’s life, the real hurdle poses when they reach their higher education point of life.
University is expensive, no doubt but there is also a need to raise civilized individuals in society.
Most funding systems are horrendous and leave you financially crippled. The best way to give your kids a valued yet easily acclaimed education would be to keep funds before this moment.
You can promise your child a decent education in a financially sound manner.
#12 Charity Purposes
You’re earning a handsome amount and can manage well, that’s great and you should be proud of it. All the former years of your labor finally paid off into getting a decent income.
And acknowledging your privilege is only sufficient if you make it a cause to give some back to those who are less fortunate.
Be it a humanitarian organization or simply a homeless person you see on the street, you should aim to actively save some of your hard-earned salaries to spend on humanitarian causes.
#13 Save For Your Next Generations
And lastly, what better reason to save if not to make sure that your future generations can live with monetary ease.
Make your best effort in trying to give those who are yet to come, a decent and quality standard of life.
Make sure to establish yourself to the extent that, even if you had to work strenuous hours to get where you are now, your future offspring shouldn’t have to go through the same.
It may seem unfair and privileged at first, but they will be constantly reminded of your efforts. Living without the fear of being in financial constraints is a feat we should give if we are in a position to.
» Read my blog post: How Much Should I Budget for Food? (Couples, Single, Family)
So now you’ve deeply evaluated every possible reason for you to save a few extra dollars. And you don’t have to save for all of the causes mentioned above, just the ones you prioritize at the moment.
No reason for saving money has to necessarily be for a greater or a long-term cause. Sometimes it can just be so you can finally stop eyeing that one dress at that overly priced store.
Regardless of the reason you are saving, it is still to your advantage to keep a savings system in your earnings.
Of course, you can still spend your money on yourself and from time to time be a bit reckless about it too. That is the beauty of hard work. But you need to be conscious of your spending and actively try to evaluate the far-off possibilities.
It is a role you should readily adopt, ensuring monetary security in your life.