Saving will give you confidence in making smart life decisions

Learning how to save money is an important life lesson that gives us a number of benefits throughout our lives by helping us gain financial stability. While we all know that saving money is important; however, most of us are unable to save our hard-earned salaries as the idea of stashing away your cash doesn’t offer the sense of joy that spending does.

Simply put, saving is basically setting aside money for future emergencies or purchases. Money gives you purchasing power.

Many people believe they need to earn big money before they can save. If you wait till then you will never save. The truth is the higher you earn, the higher your taste and lifestyle as such savings may become more difficult.

Work out a pattern of life where you can put away a percentage of your earnings to save; with savings, you tend to consume less today so that you are able to consume more in the future.

If you put away 2,000 naira weekly, in 52 weeks you will have saved a total of N104,000 (one hundred and four thousand naira only). as simple as this may seem, not many people understand they need to be intentional about it.

Saving requires financial discipline and planning and being mindful about spending money.

Here are a few reasons you should start saving money now.

To gain financial independence.

If you have enough savings to fall back on, you can take major life decisions without worrying; whether it is changing your job, planning a vacation, getting married starting your own business, or even retiring when you want to rather than working because you have to. You can take these major life decisions without taking any stress if you are financially independent.

Savings regularly allows you to live debt free.

If you want to get out of debt, you need to save money regularly; either weekly or monthly. You need to have some funds stashed away to pay off your credit card bills every month, and not incur fees and charges. Better still you can save enough so you will not even need to use a credit card in the first place.

For any emergency or unplanned but important expenses

We all have unexpected expenses knocking on our doors at all time; it could be a health issue, car trouble, house repairs, or even a family event. If you have some savings in your bank account, you will be able to manage these expenses much more prudently.

You need to have some money in an emergency fund, which can be used when unexpected things come up, rather than borrowing money from friends or family. Building an emergency fund regularly can also help in maintaining your budget and keeping a check on your monthly spending.

You can save to buy a car, house, or go on vacation.

One of the most significant financial decisions that a person makes is buying a house of their own. Buying or building your own home is not a walk in the park, but if you are able to start saving early, even if the funds you have 20 years after cannot build your dream mansion, it can be a down payment to secure a home. Also applicable to saving to buy a car and going on vacation.

Savings also help you prepare for retirement.

Gone are the days when people retired only after 60. Today’s generation wants to work hard for a few years and save enough money to retire early and enjoy their life. Thus, by saving money, you can ensure that you retire when you want. Set a target, work hard to achieve that number, and then take a call on whether you want to continue in active work or do something else in life.

You can save for traveling

Traveling is a way to learn about new cultures and places, and meet people. Saving money to travel is one of the best things you can do. If you already have a destination in mind, it is vital to estimate the cost of travel that you are planning to do and save money accordingly.

You can save money for investment purposes.

Make your money work for you. By putting your money in a savings account, you can make your money grow by getting higher returns through investments. By investing in long-term plans, you beat the rising costs of inflation effortlessly.

Regular savings help you live a stress-free, worry-free life.

If you don’t want to compromise on your life choices continually, it is best to build a savings account and contribute to it regularly. The importance of saving money is simple; it allows you to enjoy greater security in life. In case you have some money set aside, you will have something to fall back on in hard times. You can live your life stress-free if you don’t have to worry about money all the time.

You may say saving money instead of spending it, is easier said than done. However, having some savings stashed away can give you confidence in making smart life decisions. If you haven’t inculcated a habit of saving a part of your salary yet, start with small steps and set up a weekly or monthly saving plan. Cut down on unnecessary expenses and make wiser spending choices to add more to your bank balance.

By saving money, what you have done is open up new avenues in life, which otherwise would be difficult, or even, impossible.

So don’t procrastinate anymore. Start today.