If you are getting by just fine on your current salary, you may be wondering what all the fuss is about regarding saving money. You have enough to live on and afford the things you need, why worry about putting more money away? There are plenty of reasons to start saving more money, or start saving period.
I’m sharing 17 reasons to start saving more money today.
Here are 17 reasons to start saving more money, right now…
#1 Save to reduce stress
Have you ever lived paycheck to paycheck? According to a 2014 study done by the Brookings Institute, 38 million American households live paycheck to paycheck. There is a certain level of unwanted stress that comes with a lack of funds. When you can’t afford the bare minimums of life, you feel it everywhere.
Although difficult, it’s not impossible to save money while living paycheck to paycheck. It starts with analyzing your expenses and getting rid of anything that is not a necessity. Once you are in a place to start saving money, you can reduce your stress levels significantly.
#2 Save to avoid asking for money
Whether it’s your parents, your friends, or your significant other, it’s never fun to have to ask people for money. Not only does asking people for money indicate a lack of financial independence, it gives the person loaning or giving you money control. Avoid owing people money and feeling indebted to people by saving your own money.
#3 Save to live the life you want
As I mentioned in 11 Ways Saving Money can Impact Your Life:
“No one wants to be told they can’t do something. More importantly, no one wants to feel like they can’t do something because of a lack of funds. If your friends are taking a vacation and invite you to come along, you don’t want your situation to stop you from going. Having a savings in place can give you the freedom to do what you want, when you want.”
#4 Save to cover emergencies
Maybe you don’t have the stress of living paycheck to paycheck, but if you are just getting by, the stress of a financial emergency is gruesome. The sooner you start paying for emergencies and unexpected expenses, the more you will have should that time come – and it will come.
#5 Save to avoid overpaying
Once you start saving money, you will also start paying attention to your expenses. You will comb through your budget with a fine-tooth comb to see where you can save more. This activity will result in you getting rid of any expense you don’t need.
An attention to detail over your finances can easily result in you being knowledgeable of where you overspend. Save more money to avoid overpaying for things you don’t need.
#6 Save so you can travel
The world is a beautiful place! There are so many things, places, people and cultures to experience! Start saving more money so you can travel and see the world. There’s nothing worse than going on vacation, only to come back and be strapped for cash.
All of the stress that washed away during vacation instantly comes back. Also, saving for a trip and starting the planning process early can keep you motivated to save until your trip comes.
#7 Save for a killer retirement
Being lucky enough to retire, regardless of when, is a huge accomplishment. However, you don’t want to be forced to continue to work because you failed to save adequately for your retirement.
People are living longer and longer, which means they need more money to survive on during retirement. If you fail to save enough now, you may be forced to work or cut back things you don’t want to. Start saving money now for retirement to ensure you get to enjoy it.
#8 Save to buy a house
The “American Dream” is home-ownership. Owning a home is another amazing accomplishment that people experience throughout their lives. Without saving money, you won’t be able to live that dream.
The lowest down payment to own a home is 3%. To reach that amount, you need to save. If homeownership is something you are considering in the next few years, start saving more money towards you down payment now! Check out the Home-Buyer’s Checklist for more details on what you need.
#9 Save to send your children to college
The amount of student loan debt is insanely high. Imagine if you could send your children to college without worrying about how to pay for their tuition? Imagine that your children wouldn’t have to incur high student loan debt? Saving money specifically for your children’s education will take that burden off of you as a parent.
The minute your child is born, open a 529 college savings account and start contributing. Like any account, the sooner you start contributing, the less you need to contribute to reach your goal.
#10 Save to be happier
Money doesn’t equal happiness, but it does equal security. Having that financial security means the world. Save money to be happy with your life and knowing that you are secure should something happen. It feels good to set your mind to something and actually do it, and the same applies to saving money.
#11 Save to be covered if you lose your job
Financial emergencies may be small and one-time, but the loss of a job could have lasting effects on you and your situation. If you are fired or laid off, your next paycheck is gone. It may be harder than expected to find another job, so your savings may be all you have to get by.
Saving 3-6 months’ worth of expenses can help ease the burden of a job loss. Take that stress off your hands by saving for it ahead of time. If you never lose your job, even better!
#12 Save to help others
Research shows that helping those in need makes you feel happier and more grateful to your own life. When you have money saved, you can afford to donate funds to those in need. It may be a charity or cause close to you, or a homeless person on the street. Start saving more money so you can help others and make a difference in someone’s life.
#13 Save to start a business
Do you have dreams of owning your own business? What is stopping you? If it’s a lack of funds, then let’s change that! Start saving more money so you can do the things you want, like start your own company.
Having a savings in place (3-6 months’ worth of expenses) will allow you to focus your efforts on growing your business without worry of where money is coming from.
#14 Save for nice gifts
Remember when you were a little kid during Christmas or your birthday? Mom and dad got you nice gifts and your world was wonderful! Wouldn’t it be nice to return the favor?
If mom and dad are still working hard, saving money to send them on a much-needed vacation, or get them something new can make you feel amazing. Being able to take care of the people you love is a great reason to start saving more money.
#15 Save to upgrade
Maybe you already have a house or a car, but what if you wanted to upgrade? Saving money allows you to take your current situation (even if it’s a good one) to the next level. Turn that Honda Accord into a BMW. Turn that one-story house into a two-story. Start saving more money now so you can upgrade yourself in the future.
#16 Save to take care of your dependents
Do you have children? Heaven forbid, if you died right now, how would they be taken care of? How would your funeral be covered? Saving money not only allows you to take care of those you love now, but also when you’re no longer around.
The ability to leave some money or assets behind for your children is a great feeling. Just knowing they won’t be struggling is a reason in itself to start saving more money. Check out the article Estate Planning for Millennials for more insight.
#17 Save because you can
Regardless if you need anything or strive for anything or not, saving money should be done. Start saving more money because you can! You never know what the future may hold, so why not have your finances covered for whatever may come up? If you are in a position to save more money instead of spending it, take it!
These are just 17 reasons to start saving more money, but the list goes on! Whatever your reasons are, think through them. Dissect why saving money is important for you and your situation and start making positive changes to put more money away.
Why is saving money important to you? What inspires you to put more money away? Leave a comment below to share!