Let’s discuss an important topic that many want to do, but never get around to doing it: Saving.
Although saving seems like such a daunting task where if you are not setting aside a large amount of money a month, it is not worth it. Think of it this way, you have to start somewhere so why not start with a small amount that you can afford to put away? Once you get into the habit of setting aside money every paycheck, your savings will grow.
Now to the important, yet obvious question, why save? We live in such a materialistic society so of course it seems absurd to save your money when you can spend it on that new item you’ve always wanted. For some, this might be you, for others, money might be tight and the amount left over after the bills are paid isn’t worth saving. For both these scenarios, saving seems impossible.
It will never happen to me
Say you have enough money to pay the bills, put food on the table, and purchase any other necessities for the month. Unexpectedly, you are at fault for a car accident, you wind up in the hospital, or have another pricey expense arise. Yes, you can work a few more hours or cut back on some unnecessary buys for the next few months but stress is inevitable. Even for cases where you want to quit your job, buy a new car, or want to retire early, it is important to be prepared.
To avoid the unnecessary stress, you can be prepared for situations like those listed above and start a “rainy day” fund. It is crucial to save money so that when an unexpected expense pops up, as they always do, you have a cushion and the expense will have a minimal impact on your life.
Watch it grow
The ideal financial lifestyle is not living paycheck to paycheck but having your money work for you. Put your money in a high interest savings account because while you are starting to grow your funds, why not have your money earn interest? Once you have enough money set aside for your rainy-day fund, continue your savings habit but this time, save for retirement. Open an investment account like a Roth IRA or 401k which earns a higher interest per year. Here, your funds have the potential to grow significantly more depending on the market.
Saving allows you to broaden your horizons and gives you more options in life. Who wouldn’t want to retire early, move into their dream home, or just have peace of mind? The more financial freedom you have, the wealthier you are. You can be wealthy if you save money and invest smart.
Your financial goals can be achieved. Talk to a financial advisor to achieve these goals and become the wealthy individual you always dreamed of becoming but never thought you could.