The advantages of saving
Written by R. A. Stewart
Having savings will make life easier later on down the road. Just think about these benefits of saving money that people who are shopaholics cannot take advantage of.
- You are able to invest the money and grow your wealth. There are ample opportunities to invest your money and make it grow and if you are able to save your money, you can take advantage of these.
- When you save up for something instead of using your credit card then you save on interest repayments. People who buy stuff on credit are paying more than if they have paid in cash. During a person’s lifetime, this interest adds up to a fortune.
- Having savings behind you gives you more options. If you spend everything you make then when the time comes that you may lose your job, you are inhibited by your lack of resources. People with savings behind them are able to move to another city in order to find work.
- When an emergency arises such as dental repairs, car break down, family occasion such as a wedding or funeral, you are in a better position to deal with it if finance is not a problem.
Saving money requires self-discipline and responsibility for your own finances and with a bit of planning and organization you can make life easier for yourself to cope with the financial hits that will occur from time to time.
Having a plan for your money instead of just saving for the sake of it will give you motivation to keep saving. There are several things you could save for; here are some ideas.
* An emergency fund
*To build a share portfolio
*Save for a car
*Save for a wedding
*Save for a house deposit
*Save for an education fund for your kids
*Dentist and medical bills
Money which is used for saving is disposable income; it is money left over after paying your fixed costs. Think about what you spend your money on that is a want rather than a need. That is money which can be saved and used elsewhere. Money which is spent on wants is considered as consumer spending; it is money which is consumed. Disposable income or discretionary spending money as it is also referred to can be used to protect yourself against future financial shocks. It is the responsible thing to do to make choices which benefit you and your family.
Irresponsible people just fritter away their disposable income without any thought to the future. What you spend your money on will make a difference to future financial outcomes. It all boils down to planning which will in turn help you to make better choices. No one ever reached the retirement age and regretted that they joined a retirement scheme.
Always strive to save when you are in a position to do so because life does not always follow a straight path; there will be setbacks along the way as those people affected by natural disasters will tell you.
About this article
This article is of the opinion of the writer and may not be applicable to your personal circumstances, therefore discretion is advised. You may use this article as content for your ebook, website, or blog.
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The savings habit should be developed from a young age.