3 Reasons You Should Start Saving Now

Personal finance is an important aspect of life. This entails investing, buying houses, saving money, applying for loans and and using credit cards. These things can make life more convenient, save you stress & improve your spending power, but can also cause you serious problems. Thanks to the recession, people have found themselves in need of financial stability. Perhaps the best way to stabilize your assets is also the most simple: save more money. The economy might be bleak now, but it will eventually recover. If you give up certain luxuries now, you will be able to splurge more in the future, which will coincide nicely with easier access to credit & rising salaries. Below are the top 3 reasons why you should start saving more now.

1. Stabilize Your Finances and Your Life!

It’s wise to have a baseline of funds to draw from. You never know what will happen, but your stress-level and outlook on life will be much healthier if you have a cushion to protect you from hardship. For instance, jobs are anything but guaranteed in this economy. Who knows what health issues may arise in your future? Even a speeding ticket can be a huge thorn in your side, if you’re not prepared. Establishing a reliable source of funds will ease these annoyances. You may have to dip into it here and there, but as long as you replenish your savings as you earn more money, you can rest assured that you’re in a much more stable and enjoyable place than many people.

2. You will Retire Someday

Saving money is very beneficial in the long term. Retirement is supposed to be about relaxation and enjoying life. If you still have to work (or you have nothing to spend) in your 60s and 70s, you’ll miss out on quality-time you could have spent with your family and friends, traveling, or just enjoying a life free from work. A stress-free retirement is harder to achieve nowadays, but the key to this goal is forethought and cautious planning.

3. Luxury Items are Attainable!

If you’ve always wanted to see the world, drive a classic car or install a swimming pool, these things aren’t pipe dreams. Anyone can afford these things with careful planning and smart spending. If you need a loan to afford these items, you need good credit and perhaps a down payment. On another note, if the monthly payments are high, a healthy savings account can prevent this from causing undue stress. Furthermore, big investments require maintenance and upkeep. If you want to enjoy these luxuries at their finest and not have to worry about little problems, having savings on hand will make your investment worthwhile.

The great thing about saving is that it will improve your life in the present, the short-term future and the long-term future. Consider setting aside 15% of your paycheck for immediate savings (things that may come up in the next few months), 10% for short-term savings (luxury items or big investments in the next few years) and 5% for long-term savings (retirement). This formula will add up to a lot over time. If you can afford to set aside more, even better. In times of financial turmoil, it’s up to consumers to plan their future. You’ve already taken the first step by reading this article. Now, it’s time to start saving!

Karmen Jones likes to write about saving money, personal finance & term life insurance.

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