The Benefits of Saving
Saving money can be difficult while supporting your family, including paying bills, paying for your kids’ hobbies, and home maintenance.
Among your busy day-to-day life managing a household and a family, it might be hard to find time—and motivation—to plan your finances and set savings goals. But saving, especially for your family’s future, can eliminate unnecessary stress and help you feel in control of your future. Finding the motivation to put away some of your money can be challenging, but starting early can relieve stress today and down the road.
Financial savings have many benefits. First and foremost, though, savings enable you to prevent financial disaster when something unexpected—like losing a job, your car breaking down, or having a sick child or pet—happens. Similarly, savings support positive changes and enable you to plan for financing a home, retirement, and vacations. Find the motivation to save with the following tips.
Saving today sets you up for a brighter, less-stressed tomorrow!
Here are five ways to get started:
- Focus on the positive. One study from Northwestern Mutual shows that people who save are happier. Setting goals for the future and having a plan in place can eliminate stress and boost positive feelings—and feelings of security and control.
- Set a goal. Whether you want to save for emergencies, get out of debt, buy a car or house, plan for retirement, or save for your kids’ educations, choose a goal (or a few goals) and write it down.
- Create a plan. America Saves, a resource from the Consumer Federation of America, recommends creating a savings strategy that includes:
- Paying off high-cost debt.
- Saving for emergencies.
- Saving for retirement.
- Saving automatically with monthly account transfers from checking to savings.
- Paying off your mortgage before you retire.
- Set a budget based on your income, expenses ,and savings goals. Reducing your spending is a great step to building a savings account. Budgets help you identify and eliminate or limit unnecessary expenses, like eating out too often.
- Improve your quality of life. Saving money at a young age can help you reduce stress today and as you get older. You’ll avoid the unnecessary pressure if you face a financial emergency, and you’ll be more equipped to handle future life changes. Avoid unnecessary stress with positive, proactive behaviors. It feels good to save—and to be in control!
Start saving now and reap the many benefits that come with putting money away. Your future self will thank you.