Having a pot of savings is so important, but according to recent statistics, nearly 70% of Americans have less than $1,000 in savings, and a fifth of Americans aren’t saving any money at all. If you don’t think saving is important, read these five reasons why having a savings pot is a good idea.
Save for Emergencies
You never know when an emergency may strike. Whether it’s an unexpected healthcare bill, the cost associated with a broken-down car, or sudden home repairs, a lack of emergency cash can put you and your family in a dangerous position. If you need to, you could take out an auto loan to get cash fast. This handy car title loan guide is still an important part of your decisions, so use it to consider what would work best for your situation.
To avoid using emergency loans in the future, you need savings; it’s as simple as that.
Save for Your Future
Saving money is an important step when planning for your future. Are you looking to buy a house one day? You need savings. Are you planning to get married? You need savings. Want to have kids? That’s right, you need savings.
Big life events and changes all require vast quantities of money, and the best way to pay for them is to start saving up now. Think of it as an investment to benefit your future self.
Save for Your Children’s Future
If you’re planning to have children, it is all but essential to have some money saved. The average cost of raising a child to age 17 in the US is over $230,000, and that doesn’t include the potentially extortionate cost of a college education. Get ahead of the curve and plan for the future of your children by saving up now.
Save for Fun!
Unsurprisingly, interesting new experiences and traveling the world both cost money. If you have a large family and you want to go on a vacation, for example, you need to save to be able to afford it. Saving up even a small amount of money each month can give you more opportunities to have fun and do things you enjoy doing—it could even make a dream come true.
Save for Freedom
If you’re living paycheck to paycheck, you probably don’t have money to spare to do things you really enjoy. It’s also likely that you won’t have the chance to change jobs or follow your passion.
A pot of savings would give you the freedom to take risks. If you work a job you hate, savings could provide you with the means to quit and find out what you really want to do with your life. Savings can also allow you the freedom to splash out on the occasional luxury item.
Having a good amount of money set aside can give you the opportunity to do things you want to do without stressing about paying for day-to-day expenses. Whether you want to save up for a specific reason or put money aside for a rainy day, it’s never too late to start, and you’ve got nothing to lose.