There really is no point in putting off your savings plan any further. Start tucking some money away with every paycheck and you’ll be glad you did in the future.
Here are 7 reasons to start saving now.
1. Emergencies Happen
Life is beautiful, but it’s also full of curve balls. You will likely get hit with an emergency expense at some point in the future. If you haven’t started saving already, then you might have to go into debt to pay for that unexpected expense. You don’t want that, especially if you’re already carrying quite a bit of debt at that time.
Avoid getting burned by one of life’s curve balls and start saving now.
2. You Want to Retire
One of the best reasons to start saving right now is so that you can retire when you hit your sunset years. You’ll want to have a healthy nest egg in place by the time you get there, so you’ll need to start saving immediately.
The good news is that Uncle Sam offers tax incentives to people who put money away for retirement. You can save some pre-tax income in an IRA or 401k and not worry about paying taxes until you retire.
3. It Builds Character
Although the “it builds character” reason sounds like something that your mother might tell you, it’s still good advice. When you discipline yourself to put money away, you’re forcing yourself to a life of principle when it comes to managing your finances. That’s going to have lasting benefits.
Also, you’ll get creative when it comes to making ends meet. You’ll hunt for bargains, learn how to extreme coupon, or find some other means of meeting your budget.
4. The Beauty of Compound Interest
If you start saving money now, you’ll enjoy the benefits of compound interest over a longer period of time. That means you’ll earn interest not only on the money you deposit, but also on the interest earned on the money you deposited.
Make sure that you’re earning a great savings account rate to get the maximum benefits of compound interest.
5. For a Down Payment
If you don’t own a home right now, then you’re probably going to want to own a home at some point in the future. For that, you’re going to need a down payment. For a down payment, you’re almost certainly going to need money that you’ve saved.
6. For a Major Purchase
Even if you do have your own home right now, you still might be planning a major purchase at some point in the future. If you’re looking to buy a fine piece of art, take an expensive vacation, or purchase some other luxury item, you’re going to need money in the bank. That money comes from savings.
7. Because Nobody Else Is Going to Do It for You
At the end of the day, only one person is going to save money on your behalf. That’s you.
Whatever reason you’re coming up with to not save money now, you’ll almost certainly have a similar reason 5 or 10 years from now. Ditch the excuses and start saving.
It may seem difficult to put some money away into a savings account with every paycheck. However, if you discipline yourself to save money, you’ll be glad you did when you need it.
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