Ten good reasons to save your money
There is no end to products, services and objects of all kinds on which you can spend your well deserved pay during your work week. Between your monthly accounts, your grocery bill and your entertainment expenses, it can be hard to find even a few dollars to set aside each month. In addition, there are credit cards and debit cards and cash advances that make it even easier to access money, and as a result, expenses. Even if you do not have cash, it is almost certain that you have a credit card, making it even more difficult to save money.
Given all these factors, it can be difficult to take responsibility for your spending habits. Here are ten good reasons to save your money that will motivate you to make the effort:
Everyone wants to become rich. No one wants to worry about accounts payable or tight budgets. Unfortunately, it’s soon said, but it’s not that easy. Many rich men and women have started at the bottom of the ladder and, with sustained effort and sparing every penny, they have been able to reach the world of the carelessness we all dream of. You have to make money to make money, so start saving by setting aside a small amount on a regular basis. By making sure you save a portion of each paycheck, you’ll be ready when an investment opportunity comes up, and you’ll be able to work your money for you.
Are you the type to put each purchase on your credit card because you do not have the cash to make your purchase with your own funds? If this is the case and you only pay the minimum each month, you could end up paying up to 50% more than the retail price of each purchase you make. Here’s how to save your money can save you even more in the long run. If you have a savings account with a large amount of money saved, you will not have to make every major purchase with your credit card. You will save in interest charges. This will allow you to save even more and improve your financial situation in the long run.
Buying a home is a very expensive investment. Monthly payments, accounts, taxes and unexpected expenses are inevitable. To simply qualify for a mortgage, you must have saved a down payment of approximately 5% of the value of the house in question. Moreover, as we can not predict the future, it is important to have more money saved when buying a home than it may seem necessary, in case you are forced to face unexpected expenses, such as an emergency repair or necessary maintenance. Saving enough money for a down payment can take several years, not to mention all the other expenses we mentioned above, so it’s a good idea to start saving sooner than later!
Just like buying a home, buying a car is a significant investment for which you will want to pay a down payment. Plus, your new car will have a monthly payment itinerary and insurance payments that will be easier to maintain if you have some money saved.
If you’re in debt, whether it’s with a student loan, a credit card, a personal loan or even a mortgage, you need to make saving a priority. Your debt will not go away alone; it is far too easy to make the minimum payments without realizing that interest on certain debts can make them insurmountable financial burdens. Start saving today, stop using your credit card to make unaffordable purchases, and make more frequent and large payments to the balances you owe.
Everyday life generates thousands of small expenses that can often seem endless. These small expenses accumulate quickly and can become difficult to manage. Avoid getting caught in a new vicious cycle of debt because you do not have enough liquidity to meet the demand.
Unexpected expenses always seem to be very expensive and they always seem to be needed at the most inopportune moments: a major repair of your vehicle or your home can cost thousands of dollars and if you have not saved anything, it may seem impossible to pay without having to turn to debt. However, putting this kind of expense on a credit card can simply worsen your financial situation, especially when you start calculating interest. With a little money in a woolen stocking, these situations become a little easier to manage without stress.
While it is never pleasant to prepare for the worst scenarios, it is important to save money in the event of an emergency. An accident, a funeral, a severe weather event can all generate significant costs without prior notice. A well-stocked savings account will help you be better prepared when the worst happens.
You may think, like many people, that a job loss or temporary disability can not happen to you. You may not think you need to prepare this particular scenario. But the reality is that thousands face these terrifying scenarios every year. Do you have enough money to cover your expenses while you find a new job? The time of a convalescence? By being prepared, you can better deal with difficult situations when they arise.
Living a constant financial stress is both harmful to mental and physical health. To have the trouble of living from one payroll to another without planning for the future is a recipe for financial disaster. If you want to live a happy and stress free life, you need to be organized and prepare for your future. You have nothing to lose and everything to gain by saving what you can every week. Do not succumb to the trap of spending and debt, live without stress by saving today.