Most can probably agree that they’d rather buy the new shirt they’ve had their eye on, get a bite to eat, or even take a little vacation than put their money into a savings account. The next time you are debating whether or not you should save or splurge on something you maybe don’t need consider these reasons to stay the course with savings and be mindful about your spending.
Spending: That’s right, spending. The more you prioritize saving at a younger age, the more likely you will be to prioritize saving over spending in later years. In addition, the more that you save and invest at a younger age, the more compound interest will work in your favor for more spending down the road.
Stability: We all know that life is unpredictable. Regardless if it is an emergency, accident, health issue, or even happy events that come earlier than anticipated, it is important to be prepared for unexpected costs. The more savings you have in place, the better you can handle these surprises.
Philanthropy: When we are not able to meet our own needs, it becomes difficult to support our communities. With a good savings base it becomes easier to meet our own needs and in turn to give back to and support our communities.
Freedom: The concept of financial freedom isn’t the same for everyone. Regardless of how you define financial freedom, most agree that more savings allows for more freedom and flexibility in your day to day life.
Of course the occasional splurge won’t hurt, however it is important to remember the importance of savings and practice saving over spending for all of these reasons and more!