To build wealth, it does not have to be fancy. An easy and best way to save money is simply making sure you set aside a little bit each month.
It’s no secret that with the cost of living rising, saving money is more important than ever.
Here are the Top 7 reasons why you should start saving today.
1. You Start The Habit of Saving
Saving money is the basis of all financial success, but in reality, it can be difficult to implement.
Common excuses are that you don’t have enough money and will wait until your income increases, or you will save money if you get a big bonus. But with a little creativity, even these excuses for not saving won’t work!
If you start small, it means that over time you can save big.
Let say, you put away just $10 per day.
The result is not only an extra $300 a month but also some great habits to make your future selves proud!
2. The Power of Compounding
Compound interest is awesome.
It can make a little bit of money grow into a larger amount in the future. It is also a reason why you should start saving money as early as you can.
For example, should you save $300 monthly and gain 10% interest per year, you’ll have $4000 by end of the year. And when you reach 20 years, you’ll have $200,000.
3. An enjoyable life doesn’t have to be expensive.
Is it really true that you can’t have an enjoyable life without paying for expensive items?
Who says a good time in this world has to come at such high costs. You don’t need luxury cars or designer clothes to be happy and content with your lot in life.
We buy things we don't need with money we don't have to impress people we don't like
Simplicity is the key, which doesn’t mean being boring but rather focusing on what brings you joy rather than accumulating more things all the time.
You can find happiness in the simplest pleasure such as having ice cream with your best friends, walking at the park, cooking with family and friends, and etc.
4. You don’t need to waste your money just because you can
This is a tip for any of those who are in the habit of buying things they don’t really need and want, but simply because they have an excessive amount of spending cash on them at the moment.
Before purchasing anything new, ask yourself if there’s something else that could use replacing instead or more importantly – do I even REALLY want this item?
5. Dollar Cost Averaging (DCA)
Do you want to grow your wealth without fear?
If you invest in Unit Trust, DCA is a simple yet effective strategy that will help you grow your wealth.
As the market is always up and down, DCA helps to take the fear out of investing and you don’t need to time the market.
If market prices are up, then this means your net worth will be increased because there was a capital gain from an increase in price and so on!
Likewise, if markets were down when you invested into said fund- now with lower asset values – more units of fund would mean greater returns over time.
Related: Invest In Unit Trust Confidently
6.There’s no guarantee that you’ll always have that income stream.
Nowadays, especially with pandemics, there are so many ways that your income can change. No matter how much you love your job, you don’t know how long you will be on job or how long that job will last.
You never want to get too comfortable with your current job because it’s not guaranteed tomorrow will be like today.
You cannot control whether you will be on job for the next 5, or 10 years. But you can contribute to saving money, and it will prepare you for the unexpected.
Related: Simple Way To Build Emergency Fund
7. Starting to save money now will change your life.
Have you ever think that if you start saving your money now, everything will be so different in the future?
Saving money is great. It’s easy and it makes you feel good. And if you’re starting early, it will change your life in the best way possible!
Try to cut down a small number of habits like buying brew coffee or fast food every day.
You’ll be surprised at how the savings of just $20- $50 per week on these items can help you to accumulate significant savings over time.
If you start saving today, What will happen to you?
a. Your salary income will grow
When you save money, you will feel confident and at peace with yourself. You can focus more on your career, which means better opportunities for growth in the future.
I also believe in an aura, an energy that surrounds it.
The more you save money, the more it attracts positive vibrations and creates good karma for yourself.
Your income in the future is like a tree that is being watered today. If you’re saving money right now, it’s like watering this tree for tomorrow and all days to come!
b. Your relationship becomes better
9 out of 10 marital arguments start from money and the stress that comes up for not having it. When you are in debt, and not having money will cause tension, anger, distrust, etc.
Improve your marriage relationship by nurturing your finances.
c. You have a good quality of life
Imagine a life where you never have to worry about how much money is in your bank account. You can go and do anything, without worrying that it will take away from what’s important or make things even worse.
When you save money, you will have great peace of mind and having better sleep every night. Isn’t that wonderful?
d. You build trust and confidence
The more money you save the more proud of yourself you feel.
Besides that, you will have more control of your own destiny.
If your job affects your health or gives you a nervous breakdown, you can decide to walk away, even if you don’t have a new job lined up yet.
If you’re tired of living in an unsafe neighborhood, you can move to a safer area.
Although money doesn’t solve every problem, however, with money in the bank, will help you to deal with issues better.
Related: The 25 Principles of Success
e. Reduced anxiety or stress
When you’re living paycheque to paycheque, you constantly worry about money. Study shows that 57% of divorce are the result of money stress. In addition, your relationship with friends, siblings, parents might be affected because of lack of money.
This is why it is healthy to think about your finance and start to save money today.
f. Gives you options
Savings money is good for opening up opportunities. For instance, you see an investment opportunity or anything to take up in the future.
Having money will give you choices like homeownership, career change, building a business, pursuing your passion, and etc.
g. Help during the time of crisis
We prefer not to think anything terrible is going to happen. But, life is full of surprises.
The unpredictability of life can make for a pretty bumpy ride.
It’s always good to have some extra cash on hand in case unexpected events come up, and you’ll also be able to relax knowing that if anything does happen, it won’t cause great harm to your finances.
Conclusion
Saving is important because, when you have savings, your future self will thank you.
If you’re still thinking about starting a savings plan – let us show you how easy it can be with 3 simple tips that really work.
I have seen many wonderful stories about what happens to most people who start saving although as little as $200 each month from their monthly income!
It might look like an overwhelming task now, however, there are plenty of ways to start small and build up your wealth over time.
by Khairul
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