Seven reasons why regular saving should be your new year’s resolution!
In our consumerist world where you are incessantly invited to spend, spend, spend saving can seem deeply uncool but when you find out all the benefits that you can achieve by saving you’ll realise that this is one new year’s resolution that really could transform your life. Here’s how:
It makes you feel good
Constantly being skint is not a good feeling. Having a bank account in credit and knowing that you are in control of your finances really is.
It prepares you for an emergency
Knowing that you have the money put by to deal with an unexpected emergency whether that be a boiler that is on the blink, a car that refuses to start or a leaking roof is reassuring.
It makes you healthier
Stress is a killer – it can trigger heart attack and stroke as well as less life-threatening but debilitating conditions such as depression, anxiety and insomnia. Relieving the stress you feel when financial disaster is just one pay cheque away really could save your life!
It teaches self-discipline
If you establish a regular saving habit by putting money aside each month before it gets spent, you will learn to prioritise and resist the temptation of the fleeting high from acquiring something new in favour of achieving longer lasting and more fulfilling goals.
It gets you free money
Interest earned on your savings is basically free money. The process of compounding earns interest on that interest which is more free money. The power of compounding can be really surprising. Don’t believe me? Just have a look here to see how a $5,000 investment can grow to hundreds of thousands of dollars.
It gives you choices
Always dreamed of giving up the day job to set up your own business? With money in the bank to cover your living expenses for six months to a year you could afford to take the risk. Want to retire early? The only way you’ll manage it is by building up a pension pot big enough to live off for decades – again, saving is the key.
It gives a good example to your children
A saving habit acquired early in life is a real gift to your children in setting them up to take control of their own finances and benefit in all these ways from a young age.
You might think you can’t afford to save but can you afford to miss out on all these benefits? Make your new year’s resolution a real game changer this year and start a savings habit which will bring a lifetime’s worth of benefits.
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