Are you having a hard time building a savings? It can often be quite
challenging to find even a few pennies to put away when you’re living on
limited funds – however, it is not impossible. While we all strive to be debt
free, and content with our finances, we must also see the importance of putting
some away for our futures.
Whether we save for emergencies, retirement, or
entertainment, – having a financial cushion for which you can rely on
throughout your life is extremely important, and often the key to financial
Reasons You Need to Save
In some ways, it might seem like we’re built to simply live in the present
day. Many take on the attitude that we’ll deal with whatever life throws at us
when it happens. Yes, it is true that you cannot prepare yourself for every
circumstance that might happen in your life (or else you’d drive yourself crazy
thinking about all the “what ifs”). However, this does not mean that you don’t
have something tucked away to make life easier. Below are some of the top reasons
it pays to save:
· Long Term Goals – We all hope to live a
long and prosperous life. However, if we don’t plan for the future, how much of
a future will we have? Whether it’s purchasing a car, a home, or even planning
for retirement, having a savings is necessary. Most of us do not make enough
money in a month to cover these expenses, and as such having a bit of income in
reserve can help you accomplish these goals faster.
· Emergencies – No one can predict the
future. We don’t know what will happen to us in any given day. Should you lose
your job, get injured, have an emergency repair in your home or car, how will
you survive financially? Having an emergency savings of some form can ensure
that you’re better prepared in the event that something happens that requires a
great deal of money.
· Security/Peace of Mind – Having a savings
gives you peace of mind. You have a deeper sense of security about life and
whatever may be thrown your way. USA Today has a compelling article outlining The
Link Between Financial Trouble and Mental Illness.
Essentially, those who are not financially sound are more likely to become
stressed or depressed which can lead to other serious health issues.
Simple Ways to Start Saving Today
Every cent that you put away is one step closer to building your nest egg,
and therefore you should not be discouraged if you’re not able to save as much
as you’d like. Start slow and build as your finances allow.
1. Piggy Bank Savings – It’s time to go back to when you were a
little kid and pull out the piggy bank (or coin jar). Every day, place your
excess change into the jar. At the end of each month, count and deposit your coins
into a savings account so that it can accumulate interest. While it might only
average out to a few bucks a month, saving even $20 a month can add up to $240
a year, which is $2,400 in ten years (less the interest from your savings
2. Use Coupons as Often as Possible – There is this huge
misconception that coupons are only for food. I’m here to tell you that coupons
are not just for food. In fact, there is probably a coupon or discount
available for just about every product or service you use. Whether you need to
save on some new clothes for work or you’re interested in a discounted oil
change, you will find that there is a coupon or coupon code for just about
everything. Begin searching for coupons before you go out and make a purchase.
3. Switch or Package Home Entertainment Services – There’s
certainly nothing wrong with enjoying these conveniences, but in order to save,
you may need to cut back or switch providers. For instance, if you enjoy
watching Local TV, you could easily
switch from cable services to satellite services and pay a fraction of the
cost. Bundling is also another option that can lead to savings. By purchasing
your phone, internet, and television services through the same provider, you’re
often given a discount on your monthly costs.
4. Comparison Shop – Always, always, always do a comparison
shop when making a purchase. Yes, there are certain things that you can’t skimp
on when it comes to price as you get what you pay for, but for the most part,
comparison shopping can save you a great deal of money. If you like purchasing
brand name food products take a look at the store brand and see what the price
difference is. If you’re looking to purchase car insurance, use a comparison
site to check out what other companies are offering.
Saving is a crucial part of being financially independent. Saving allows you
to afford long term goals, plan for your future, prepare for emergent
situations, and simply have peace of mind. If you haven’t yet developed a
method for saving in your household, try some of the recommended ideas above.
You’d be surprised how much money you can save on the monthly basis by simply
skimming back and putting away a few pennies.