Have you been saving money? You might laugh at the very idea of it when you’re struggling to make ends meet each month.
You might feel that your weekly or monthly pay is hardly sufficient to live off, much less save in the bank. That’s where you’re wrong.
Everyone has the potential to save money. It isn’t an easy task, and you won’t end up with thousands in the space of a year. No matter how small your income may seem, the potential for you to improve your finances over time exists even if it’s just a few pounds a month.
You might ask yourself, “Why on earth would I want to save? I’m quite happy right now!”. Well, here’s why:
Why you need to start saving
You get to sleep easy – Have you ever been unable to go to sleep at night, worrying about not having the funds to meet a set obligation like credit card bills or even rent of the month.
Whichever it is, saving can help you sleep better at night, because when you save you have a fallback plan. True happiness will come when you have no debt and can easily afford the rent with plenty of cash to spare.
Take charge of your fate
You’re in charge of your fate – Are you so dependent on your job that you would work satanic hours for peanuts? When you save money, you accrue so much over time that you’ll be secure if you decide that enough is enough. You gain the freedom to pick whether you want to suffer under the tyrannical rule of a horrible boss or resign and look for a better position.
You also gain more options to make your life better – you could put some of your savings towards moving out of your current neighborhood and into a safer one, or starting that business you’ve always wanted to but never had the time or money. You become the master of your own destiny.
Your money makes more money – One of the most beautiful things about saving is that most banks add a small amount (perhaps 1% to 2% of your money per year) into your account every month. This is known as interest.
Money makes money
While it isn’t a lot, the more money you put into your savings account, the more is added to it over time! Why complain about free money? Imagine you have £100 in your account and you deposit an additional £25 every money. Even if the account only earns 1% per year in interest, in a year, you’d have four times as much as you started off with, and it wouldn’t make a dent in your expenses, as long as you don’t spend on the most extravagant things!
Saving money makes sense
Saving your money is a lot more important than you think. It gives you the inner peace you need to feel less stressed, pressured and depressed all year long. Saving expands the range of options you have for your lifestyle and decisions.
It also works for you, if you can invest it correctly. In time, you’ll be able to invest in a retirement account with even higher interest rates. You could be retired much sooner than you think if you really make an effort!
Start saving right now for a better, happier life ahead.
Post by Shannon Kularathna.