No matter what stage of life you are in at the moment, saving money is always beneficial, even if you are saving small amounts at a time.
There are so many ways to start saving money that can help you begin including, budgeting apps, learning the 50-30-20 rule and more. You will be able to find a method that works for you and your finances.
It is important to have a separate savings account before you start so you can keep your savings safe and you could even earn interest.
Why you should save...
For emergencies
You never know what could happen and it is always better to have a safety net to fall back on. You could lose your job, or have a large payment which urgently needs paying such as to fix your car or a leaky roof in your house.
If you don’t have a savings pot and you have to pay for an emergency, this could place you into debt.
For the future
Your future could contain a house, kids or a move to Australia, whatever it is you will definitely need money. So why not start now and get closer to your goal. It can be daunting to start saving if you have little to begin with but quite quickly it will become a routine.
For your pension
Starting to save for your pension is also good to start as early as you can to give yourself the best chance later down the line. The state pension only covers you for the basics so it’s best not to have to rely on this if you can.
Saving for your pension means you could potentially retire earlier than others and you will be able to do more at that stage of life too.
For a large purchase
Keeping your finances in order will allow you to make better choices which won’t put you back several months. If there is a large purchase you want which could be, a car, a holiday an item of clothing, sports equipment or anything else, it would be better to save up until you have the money for it rather than purging. This will help you keep your account more stable and also reduce your impulse shopping habits too.
To feel more secure
Having a savings pot will allow you to be less stressed about how much money you have, whilst it is not there to take money out at any point, you always know you have the option if necessary.
Saving small amounts at a time will surprise you how much you can have at the end of the year.
This can also help you with any regular payments you make and reduce the stress of paying them each time if you know you have the back up resources.
