We’re all told that it’s important to save more money than we spend, but saving isn’t always fun, especially when there are so many things out there to buy – in fact, it might feel harder than ever to save money when there are so many new pieces of technology and so many places to visit, and so on. Spending money is a simple thing to do; saving is much harder.
Yet if we know why we are saving it might become easier. Plus, once you start to build your savings, it will become easier – you’ll like the way your pot of money grows. Here are some of the reasons why you are better off saving your money rather than spending it.
Emergency Funds
You will, of course, know how much money you need each month to spend on your normal outgoings such as your household bills and your grocery shopping. You’ll also know what you will have left over, and you might enjoy using that to go out and have fun, or to buy yourself treats during the month.
Enjoying yourself is important, but if you can put at least some of the ‘spare’ money away into savings, you’ll always have enough money for any emergencies that might come up. If you need to pay for car repairs, if you need a criminal law firm, if you’re sick from work and you need to use some savings to pay the bills, and so much more can all be emergencies. Having money put aside means that you can put your life back on track without having to borrow money.
Retirement
Saving for retirement is another good idea. It will depend on the type of career you have as to when you choose to retire (physically demanding careers, for example, will mean that you need to stop working earlier), but at some point it is likely that you will either need to or want to retire.
The problem for many is that they don’t have enough money to live on once there is no income coming in any more. This can mean that retirement has to wait, or you need to find another part time job when you would rather not be working at all.
If you have been saving for years, you should have enough to fund your retirement, giving you the chance to do all the things you have been looking forward to such as traveling or taking up a hobby. Or for practical options such as in-home care services from TheKey. Care options can be costly, especially if you have ongoing health concerns, so making sure you can afford to live comfortably and get the support you need is vital.
Buy More Expensive Items
From time to time there will be items that you want to buy that are more expensive than the everyday items you usually buy. Whether it’s a car or a vacation or another type of luxury item, you’ll have some options when it comes to purchasing it. Firstly, you can use credit. However, although this will give you instant gratification, you will also have to pay more in interest, and the more credit you take out, the less money you’ll have for everyday items.
Another option is to save for it. If you have something in mind when you are saving, the process is easier – you won’t mind forgoing some other purchases to put money into your savings account if you know that you are saving for something exciting.
