Why Save Money?
The first thing we do whenever we wish to celebrate even the smallest life event is to spend money. It could be the purchase of a birthday cake. It could be the expense of a gift, a restaurant meal or a weekend trip. Whatever it is that you do to celebrate, you’re going to have to pay for it.
In that respect, money may not buy happiness, but it’s linked to our happiness in both instant and ongoing ways throughout our lives. Conversely, a lack of money can contribute to our sadness where we are financially restricted from celebrating in the ways we wish. Given the undoubted proximity of cash to our peace of mind, pleasure, and prosperity, shouldn’t we all be doing more to find ways of accessing money when we need it? Perhaps we need to establish some reasons to save money, to help spur us on (check out this Wealthify ISA for savings options).
Benefits of Having Money in Reserve
When it comes to the benefits of having money in reserve, there are almost too many reasons to list (and many of them might not be relevant to us all). With that in mind, let’s cover some of the umbrella benefits of saving money – there are certain areas of our lives that cross over with each other more than others.
1. Unexpected Loss of Income
Being made redundant from your current job role can happen without warning. There may be things in motion behind the scenes that could mean job cuts are coming and your name could be on the chopping block. Without enough savings to cover your bills during your (hopefully) temporary period of unemployment, you’re going to find yourself making some difficult phone calls to everyone from your mortgage provider to your life insurance company.
2. Prevent Debt from Mounting
For the vast majority of people, debt is unavoidable. Unless you can afford to purchase your house, your car, and your phone outright, debt is always going to be waiting for you. However, where you have savings, you can help to chip away at your monthly payments to prevent ongoing debt that costs you more in interest. Savings don’t have to be thrown wholesale at your debt, but your saved funds can blow holes in what you owe, reducing the impact of long term borrowing.
3. Help in Traumatic Situations
Life is full of downs. There are some ups, too. But for every ‘up’ that comes our way it feels like there are at least ten or twenty ‘downs’ to deal with. And the bad times can cost just as much as the good times. From travelling for funerals and moving out after a messy divorce, to court cases and recovering from a car crash, you’re going to find things easier with money.
People without savings may think that they’ve never bothered to save before and they’ve always gotten by. So, why change? But if you’re fed up of just getting by and you’re ready to sample a life that sails by in first class, it can all start today with saving money.