We all know we should save money where we can; it’s an idea that is ingrained in us, and although it’s hard, it’s certainly something we should try to do more of (and there are many ways to do it, as you can see from the useful information on this site).
The problem is, even when you have saved money, the temptation is always there to spend it. You might not spend it all at once, but nibbling away at your savings can be just as detrimental, especially if you’re not keeping an eye on things and you spend more than you thought you had.
It becomes much easier to save when you have a reason to do so rather than just a vague idea that it’s the right thing to do. Once you have a goal in mind, your savings not only become less tempting to use, but they take on a greater meaning too. Here are some of the important things you could be saving for.
A Happy Retirement
It might be that you never intend to retire and that you are expecting to work for the rest of your life. If you run your own business, this may well be exactly what you want, for example. However, many people like the idea of retiring and finally get a chance to do all the things there just wasn’t time for when they were working.
Of course, to do these things, whether you plan to travel, start a new hobby, start a business, or anything else, you will need funds. Saving will mean you have those funds and your retirement can be a happy one in precisely the way you planned it to be.
It might be a hard thing to do right now, but if you remember how great your retirement could be if you put enough money away, you’ll be more inclined to do just that.
Buying a property is not as easy as it once was. There are many barriers in the way, and before you can speak to a mortgage broker about what you can buy and how you can go about it, you are certainly going to need to have a good financial record and a large deposit available.
Saving is the best way to get this deposit, and even if it takes a long time, if you continue to add to your savings account, you will get there in the end. If the thought of how long it’s going to take you to save up is off-putting, just think how unlikely it is you’ll ever be able to buy a property if you never even start! Plus, you can use your extra savings to pay off any debts, as this will make it more likely a lender will allow you a mortgage once you do have the deposit in place.
You might have a retirement plan in place. You might already own a house. You might have little to no debt, or the debt you have is entirely manageable and not causing you any problems. Why, then, would you want to put any money into savings when you could spend it? What advantage is it going to give you?
It will help you if you come up against any emergencies in your life. If your car breaks down or your home flooded, or you had to travel to another country to help a family member or friend, or even if your business needed a little help and you didn’t want to borrow any additional funds, your savings will be able to pay.
We all hope these kinds of emergencies never happen, but if they do, it’s better to be prepared than not, and your savings are all the preparedness you need.