Why do you need to start saving money? It’s a good question, though there are so many possible answers. We’re sure that you have heard all about the importance of saving before, so we’re not going to go into how you can do this as it likely won’t help. Instead, we’re going to take a bit of a different approach and try to incentivise you into saving money instead.
It’s easy to say that it’s something you should do, but when there is no goal and there’s nothing in your head that it’s going to be used for specifically, this can make it tough. The thing that you want to remember is that there are so many different uses for money that you save, some of them important, some of them just nice for your life.
In this article, we’re going to be taking a look at some of the reasons that you should start saving money, but keep in mind that this is not an extensive list, there are more that you can think of on your own.
Broken Appliances
Let’s kick straight off by looking at broken appliances in your home. It’s always when your funds are at their lowest that things decide they want to break down, but this isn’t going to work for you. When an appliance breaks, if it’s one that you use regularly you are going to need to replace it asap, and that’s not cheap to do. In fact, depending on the appliance, you could be looking at a few hundred, even upwards to a thousand for more expensive ones.
If you’ve never had an appliance break on you, or pack up and decide that it’s not working, then we’re really happy for you because you are super lucky. It is going to happen though, and you need to be prepared for it. What if it’s your refrigerator? Or your washing machine? These are not things that you can afford to put off while you save for them. You need them now, so having that money already saved is going to be a huge help.
Things Breaking Down
Appliances are not the only things that can break down in your home, and if you don’t have the money to sort out the problems as they arise, then it’s entirely possible that the next thing to be breaking down is going to be you. Your pipes could burst, your electricity could decide to shut off, your water could have other problems, your HVAC system may decide it doesn’t feel like doing its job and so much more. Depending on what you do for a living, you might be able to fix one or two of these problems, but you’re going to need to get professional help at some point.
Despite the best efforts of the tradesman, it can still be quite expensive to get professional help, not to mention the cost of the damage itself. Having this money means that you are able to pay for that without all of the drama.
A Safety Net
What are you going to do if things start going wrong in your life? We’re not saying that this is going to happen, but you do need to plan for the fact that it might. Life is unpredictable. It can throw curveballs at you left, right and center, always when you least expect it and aren’t prepared for it. But, at least if you are saving then you are somewhat prepared financially for whatever life throws at you.
For example, if you lose your job for one reason or another, you still need to be able to pay your bills. If you don’t have any income, then you’re going to struggle to do that, but if you have savings then you at least know you are covered for a short period. During this short period you should be looking for a new job, but at least a small amount of pressure will be lifted from you knowing you are still able to make all of your payments.
Nice To Go On Holiday
This one is more for personal pleasure than anything else but it’s nice to be able to go on holiday every now and then, right? If you haven’t been for a while or you want to go somewhere nice, then you’re going to have to save for it. If you would have already done this then you could have booked your holiday for sooner rather than later. But, if you’re not the saving kind and didn’t think ahead, then you’re going to have to wait. Either way though, saving for a holiday is a great idea, and it’s definitely a great motivator. We’ve seen people save more diligently for their holiday than for their home!
It doesn’t have to be anything big or fancy though, it can just be somewhere nice and quiet that you want to spend your time. Check out the prices, see what you can afford, and go from there.
Home Renovation
You never know when the home renovation bug is going to strike, and when it does you are not going to want to wait ages and ages to have the money ready. You want to be able to afford to do what you want to do now, without having to sit back and just plan. Of course, even with savings you might not have all of the money, but you will definitely be closer to what you need than if you don’t save. Or, if you know you’re going to want to do renovations in the future, then start saving now.
Ensure that you are budgeting for things like a new kitchen, paint, materials, perhaps even an extension depending on the size of your home at the moment. You also need to account for all of the help that you are going to need to get such as a roofing company, plasterers, builders, interior decorators, kitchen fitters and so much more. Write it all down to keep track of everything and then you can go from there.
Covering Rising Expenses
Even if nothing goes wrong in your life, and everything is moving along nicely the same way that it always has, then you could still find yourself in a bit of a pickle with the fact that all of the prices in life keep rising. You need to ensure that you are covered if prices start to rise beyond what you expected them to, even if it’s just going to be a short term thing. Having savings means that you are okay if this happens, at least until you can figure something else out like getting a new job or asking for a raise.
It takes a lot of the pressure off, especially when we all know that fuel prices are constantly moving up and down, and now the same is happening with the electric companies. It’s just good to have this little pot of money in case you find yourself stuck with a bill you can’t pay.
Medical Or Legal Expenses
These are two of the most common reasons why people end up in debt. Medical and legal expenses can absolutely wipe you out without even trying, and that’s why savings are such a godsend when it comes to them. Now, you might be sitting there thinking that you don’t have any legal or medical expenses that you need to pay for, and to that we only have one word: yet. You never know when you’re going to have to pay for something legal or medical related, and it is expensive to say the least. Even with health insurance, it’s expensive and that’s if the insurance covers what you need.
If for no other reason than this, you need to be saving. You shouldn’t have to panic about how you’re going to pay a bill for things that you need in certain situations and will not be able to go without. You shouldn’t have to panic every time you’re super sick and need to visit the ER. Savings alleviate some of this stress, which is why they are worth having.
When it comes down to it, the only person who can make the changes to your life necessary to save any money is you. If you’re not saving any at the moment, then you really need to figure out how you can change that, which hopefully we have now given you an incentive to do. We want to point out here that we are not aiming this article at those people who simply do not have two pennies to rub together by the time that they have paid their bills. We are talking to the people who blow their spare money on things that they don’t need, and don’t even really want without so much as a second thought. We wish you the very best of luck, and hope that you do manage to build up some savings in the near future.