6 reasons to save money
As we've seen in Dreams vs goals, it's important to set yourself a goal whenever you want to achieve something. I have my own reason for wanting to save, and it's important you find what's important to you in life as well. You may find it strange that I'm going in reverse here. After all, I'm trying to convince you that saving money is a goal you should have, rather than thinking about what goals you want based on your values. That's simply because I believe saving money is a goal everyone should have.
Not convinced? When was the last time you thought to yourself: "I have too much money right now, I wished I had spent more"? If you feel this way, I guess you're already saving money and can stop reading this post now. You may even need to set other goals in life so you can enjoy it, as saving money is all about enjoying our limited time on Earth.
But that will be the subject for a future post. For now, I'll focus on the often crucial part of setting a goal.
Most people I know will start making excuses at this point. Going on about how they have too many bills, how saving is impossible nowadays and no one can afford it, etc. I would recommend you keep those for later, as we don't want to get to the "how" yet.
Focus on the goal first. Then devise a plan on how to achieve it.
We're still on step 1 now. So here are some reasons that could entice you to start saving money. Hopefully, they'll give you some ideas of your own to apply to your life. I can't repeat it enough though, don't limit yourself by thinking about the feasibility of all this yet. We're not sending a rocket in space nor are we curing cancer, we'll manage to find a way.
Reason #1: Having money available for emergencies
Emergencies are a fact of life. If you've never lost your job, got a serious illness/injury or got an unexpected bill showing up, count your blessing and wait a bit: chances are something will pop up in your life sooner or later. The sad news is, being prepared and having money in the bank won't prevent those events from happening, but they'll let you focus on what's important without adding money-related stress to a bad situation.
Reason #2: Getting to retire at 65, or simply retire at all
Most people vastly underestimate the amount of money they'll need in retirement. For that reason, some are stuck working until their body starts to fall apart and are forced to stop working. At this point, they become dependant on government senior programs, which was never meant to finance retirement and is insufficient.
You could also lose your job, and finding a new one at 70 years old may be a challenge in itself.
We now also tend to live older than we used to thanks for advancement in medicine, which means it's even more important to make sure you'll have money so you and partner can be taken cared of in your later years.
While it may sound far, the sooner you actually begin saving for it, the easier it is thanks to the magic of compounding interest. We'll revisit that concept since it's the single best thing since sliced bread, but in simple words, it allows you to get more money in two years if you start investing now rather than next year (because you'll gain interests next year on this year's interests... MAGIC!).
Reason #3: Allow you to take more risks and achieve your (other) goals
Money in itself is not useful. It simply helps you achieve your goal. If you know you have a cash cushion to help you in case things go south, you may start taking more risks in other aspects of your life.
Maybe you'd start looking for a better paying job, or a job that give you a better work-life balance. Maybe you'd start your own business, knowing that if it fails you'll still have somewhere to live and something to eat. Or maybe it would allow you to go back to school with the aim of getting you a better job at the end.
Not all risks are equal in life, but it gets so much easier to try without money-induced stress.
Reason #4: Live a happy life with your partner
Money is the end of many couples all around the world. This makes sense when you think about it, there's not a lot of things more stressful than not having enough money to pay your bills. Having money set aside can help smooth things out when times are more difficult and prevent many fights from even happening.
Reason #5: Living debt-free, leaving you with more money
Debt allows you to buy things today with your future salary. If that sounds too good to be true, that's because it is. The price for this instant gratification is interest that you'll pay on your debt, playing against you in the exact opposite way that saving gives you.
Not all debt is created equal, but consumer debt (that is, debt used to buy consumer goods or services) will work against you and leave you with less money than if you had saved for it beforehand.
By having money on the side, there's less chance you'll be tempted to go into such debt, and you'll end up saving money in the end. Spending less money for the same thing is a good way to enjoy it even more!
Reason #6+: Make your own!
I've shared some reasons that could motivate you to save some money, but it's important that you take the time to think and find reasons that resonate with you. Again, don't stop yourself by thinking about how you'll get there: that's another step. You won't see this through if you don't set yourself a clear goal, so start with that and focus on the rest later.