Why Save Money
Afford later what you can’t have now.
If you can’t afford to buy something, just use a credit card, right? NO! If you can’t afford something now, don’t buy it yet. If you use a credit card to buy something you can’t afford, you’ll end up paying much more for it than you should.
Instead, save for it. Whether it’s a weekend trip, a new computer, or a car, you should save until you can afford it. Set up a plan to put a certain amount of money away each month until you are able to afford it. This way you will be spending your money on things you really want and not just mindlessly on anything.
Retire comfortably.
You will want to retire eventually. If you don’t put anything aside for retirement and don’t have any type of a plan, you won’t be able to. Even if you have a pension, it probably won’t be enough to enjoy a comfortable retirement.
Set up a 401K with your employer or an IRA and start saving for retirement. You may even be able to retire early. Keep saving and you will be able to achieve your dream retirement. Hopefully you won’t end up living on cat food.
Stay out of debt.
Whenever you take out a loan, you are going into debt. Debt costs a lot of money because it continues to earn interest for as long as it sits unpaid. If you save your money to buy the things you want and need, you won’t have to take out a loan. Ideally, you will never take out a loan aside from one home mortgage. Save your money and skip the credit cards and loans.
Make it through money emergencies.
Sometimes unexpected money emergencies come up such as car repairs, medical bills, or a lost job. If you have no money saved, this could put you in a very hard position. On the other hand, if you had an emergency fund saved up, you could easily pay for any emergency expenses you have. Save at least 3 months, but preferably up to 8 months, of living expenses to ensure you are covered in case of emergency.