5 Reasons Why You Should Start Saving Money When You’re Young

Everything seems to be getting more and more expensive these days. The price of oil and gas has gone up over the years and along with that the price of most basic necessities have increased tremendously. Health care today is more advanced but with that comes more expensive treatments which can cost hundreds of thousands in certain cases. Education which plays an important part in the future of our children is not getting any cheaper either. While it may seem difficult to save money because of spiraling expenses, we still need to keep some money for rainy days. Here are 5 reasons why one should start saving money the moment one starts to work.

1. Emergencies can happen

Sometimes when we read the news we pity those who seem to experience severe hardships in life. Accidents, houses being burned down, injuries and robberies occur in the news. We never seem to think that one day it could happen to us as well. I recently had a car accident and it took some money to get things done. While the insurance company took care of the total cost of the repairs, I still needed to use some money of my own. Car accidents are a small thing but what if your house is flooded? You might need to rent a place out there until your house gets repaired. The cost to buy new appliances are not cheap as well. If you don’t have the money, life can be difficult.

2. Health issues can arise in our family

Let’s face it. Our bodies are frail. Younger folks might not succumb to health issues that regularly but we probably have older ones who live with us. Be it our parents or our grandparents. For those of us who have children, sickness will need to be treated immediately as it may affect the growth of our child. In times of need, people may be willing to give us a hand. But a small amount of money will go a long way to help us with medical issues. Having said that, I think that everyone should at least get some basic medical insurance for ourselves and for our family members. It really does not cost that much. Insurance do help cover some cost but ultimately some money in our piggy bank will enable us to buy things or nutritions that help us recover faster.

3. Important events need funds as well

We go through live living great moments such as marriage or death or birthdays and other celebrations or anniversaries. While these moments don’t need huge celebrations to make us any more happier, throwing a party or celebration need funds. Important events such as weddings will take a big chunk of our salary whether we like it or not. Therefore saving and putting aside some money for these kind of events will make it easier for us in the future.

4. Education of our children

For those who have just started working this might not be an issue. But I think most of us will get married and have a family of our own someday. Raising a family is not just merely putting some food on the table every night. We need to think about our children’s future as well. Gone are the days when you can get by with a high school education. A college degree will go a long way in helping our children to secure a better future.

5. You won’t be able to work when you’re old

Most people love the idea of retirement. That is the day when all the kids are gone and you can live each day in total peace. When we are young we seem to be able to conquer the world. But our bodies do fail us. Our eyesight, our hands and our minds seem to be much slower as we age. And there will come a day when we just can’t compete in the workplace with younger folks. There are many people who retire without much money to spend for the next 20 years of their live. How good it would be if we have a pot of money to use for our daily expenses and to enjoy some traveling with our spouse once we retire.

Saving money is not such a hard thing. All it takes is to forego certain luxuries we want to have now in return for a better future. You can do away with the latest gadget or the latest fashion. Even saving $500 to $1000 a month goes a long way. After 30 yeards that small amount can turn into $360,000. A good percentage of our salary to save would be 20%. Yes it take lots of discipline but we know how it will help us in the future.

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References:

Forbes (The ultimate site for billionaire rankings)

CelebrityNetWorth (The ultimate site for net worth of celebrities)

TheRichest (Great site for things about money and rich people)

Wikipedia (Greatest site on earth for lots of information)