Some people are born rich, while others have to save. People save for several reasons; this could range from getting your favorite car to investing in your passion.
From short to long term financial goals, savings can help you decide the milestones and benchmarks. But here is the thing, some people are born “savers,” while others are spendthrift by nature. They love spending money and cannot stop. Whether it’s to uplift their mood or indulge in impulsive shopping- they can’t stop wasting. It’s because of a generous nature that they end up getting stuck in a financial mess. If you are one of them, don’t worry, we have you covered.
Being financially responsible is not that hard. Saving money is something that can easily be taught; all one needs is motivation and determination. One might face a difficult time becoming a saver because he or she doesn’t know the joy that comes along. Here are some reasons why you should love savings. Read on to become a motivated saver.
Saving Money Reduces Stress
Savings reduce stress in many ways. Having money to save usually means that you are on top of your financial game. People who are unorganized with personal finances are reported to have poor mental health. A research conducted by Northwestern and Michigan Universities indicates that those who experience “negative wealth shock” have a 50% higher mortality rate. Negative wealth shock means a 75% loss in net household finance. The mortality rate is related to increased stress, depression, and substance abuse. Savings can help you reduce this stress by acting as a buffer in a negative wealth shock.
The money you save can help you get back on your feet, just in case rainy days arrive. This could include anything from losing a job to getting an unexpected health condition. If you don’t have money tucked away safely somewhere for bad times, you’ll keep stressing about it.
Saving Money Gives You Freedom
This might sound ironic, but as much as savings restrict you from being extravagant, it also offers you the freedom to spend. Most people look at savings as a demon who prevents them from spending on things that make them happy, like going out shopping or treating yourself with an extravagant dinner.
Let’s break this notion down into a more understandable phenomenon. Savings can only happen when you have a budget. You pack your finances in a budget and stockpile a chunk of it in savings. Having a predetermined ratio in place that is securely saved gives you the freedom to spend the rest of it.
Moreover, saving personal finances gives you the freedom to plan your life and do things that you cannot imagine doing otherwise. You can save for the trip that you always wanted or retire early to pursue something you want. Perhaps, you want to give your life a fresh start and start your own business. Savings can help you do all that because, with money in your pocket, you can do whatever you want.
Saving Money Can Make You Rich
As fetched as it sounds, we have some real-life examples of people who got rich by saving money. The past generation became rich only by consistently saving their money. But for people like us, this might be the hardest way out.
Saving money can lead to investment, and wise investment can make you rich. This is the most straightforward equation that many of us still don’t understand. If you are not sure about your investment, don’t get your money in trouble.
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