All of us want to save since we are driven by the fact that we want to be financially stable in the future. It is a challenge sometimes to save as we need to pay the bills or overspend on things we don’t really need.
If your main reason for saving is to pay for treats or something specific such as a car or an expensive piece of furniture, you might want to borrow the money instead of saving for it. However, borrowing money can be an expensive way to pay for something, because you will have to pay interest on your loan.
Earlier in our lives, our parents taught us that saving for the future is the best way to be stable in life, however, how come it’s hard for some of us to save money?
What are reasons why we’re not able to save?
- We buy things we want rather than need – from clothes, food and luxuries, we tend to buy things we want rather than need even if it’s not essential for us. We overspend on shopping and groceries and buy designer labels.
- Expenses – these are unnecessary expenses like over the roof phone/electricity bills and over-limit credit cards. Why do you have to spend so much on phone bills? Why don’t we turn off the tap while brushing our teeth?
- Loans – even if you are able to borrow money, however, the interest keeps piling up, so instead of saving, you end up paying for the interest. We never notice sometimes, that when we started borrowing money, we can never stop. We depend on borrowing money, rather than saving up for something.
- Unplanned trips – unplanned trips are quite expensive if you don’t have the budget for it, tickets are pricey and you have to pay for regular accommodation pricing rather than getting deals and packages.
It is really important to start saving as there are a lot of things, which could happen in the future and it’s best that you have enough resources to cover all expenses.
Before saving up, we also need to consider a lot of factors:
- Your everyday budget – allot a budget for your everyday expenses like food and transportation, as long as you have the budget for the things that you do every day, you can tell whether you can save or not.
- Your goals – what would you want to do with your savings in the future? It is best to have goals when you save so that you will be driven enough to not stop saving.
Saving up, for others is quite hard. They perceive it as a roadblock to stop them from enjoying their hard earned money, but it’s not! It’s actually the opposite, by saving; you get to enjoy it more without borrowing or applying for a loan. So, why do we save?
Here are the 5 reasons Why You Should Be Frugal
- In times of emergency – As much as we hope that emergencies won’t happen, we all know that they do. You may have a car accident or breakdown, severe weather could flood your basement or crack your pipes, or a family member can develop a health issue. Any of these emergencies can be expensive, and we all know that we will likely encounter some sort of emergency from time to time.
- Children’s education – saving up for your children’s education is practical. You have to plan it ahead and pick the best educational program for your children. Your family is the most important aspect of your life, so it’s best to save up for their future as well.
- Things you want to buy in the future – a car, a house, jewellery or clothes. If you have the savings, in the future you could enjoy it by buying the things you want without applying for a loan. Pay it up straight and you will find it more rewarding.
- Holiday trips – If you have lots of savings, you will have the luxury to travel to places that you want. You must make sure that you plan these trips ahead so that you can get the cheapest flight and packages. Saving up for holiday trips means you have spending money, more souvenirs and getting the best deals there is.
- Retirement – It’s good if you have savings so, you can retire comfortably. Even if you are still young, you should think of your savings when you retire, the earlier you save, the more your savings would blow up.
Putting some money away regularly is the best way of saving up for the future. You don’t have to worry about unexpected circumstances at the same time you get to enjoy holiday trips and buy things that you want in the future.
Think of a plan to save and stick to it. It would be great if you save early and continue what you are doing.
Save up and live up!