It’s no secret that money can be a stressful topic. People often need more and wonder how they’ll ever get ahead. If you’re one of these people, you might be surprised to learn that savings can also be stressful!
Savings give us the ability to withstand financial setbacks
When saving for something specific, it can be hard to imagine how our savings will help us during unexpected expenses. However, there are many ways in which savings can actually make life easier. Savings can help you deal with unexpected expenses of any nature.
Savings can help you pay for big expenses without taking out a loan
If you have savings, you won’t need to rely on credit cards or other loans to fund your emergency fund. That can be especially important if your income fluctuates monthly and there are times when it’s difficult for you to make ends meet.
Savings will also buffer against unexpected expenses such as car repairs or medical bills. Those can potentially cause financial hardship if not covered by insurance or other means of payment. Having money saved up already and ready at hand prevents any additional debt from being racked up on top of what might already exist.
Savings give you the freedom to take advantage of opportunities as they arise
You can start a business, travel, or buy a home. You can take care of your family and friends. Savings allow you to live life on your terms and not have to worry about money all the time. Instead, you’ll be able to focus on what matters most to you: family, friends, and experiences!
Savings can help you enjoy your retirement years
Retirement is a time when you are no longer working, but it doesn’t mean you should stop contributing to your savings account. The best way to enjoy retirement is by continuing to save money and invest in yourself or others.
Savings can be used for many things including:
- Medical expenses
- Travel expenses
- Hobbies/homeschooling costs (if applicable)
- Education-related expenses
Having savings takes a lot of stress and worry out of your life.
Having a savings account is an important part of financial planning. It’s not just about having money for emergencies but also about being able to do things like:
- Pay your bills on time. If you have a cushion in your checking account and don’t have to worry about paying the electric bill right now, that takes one less thing off your plate.
- Save up for car repairs and other unexpected expenses that come up in life (in addition to taking care of them as they happen).
- Cover tuition costs when it comes time for college or graduate school. Or simply help out with textbooks and supplies if you’re still in high school!
Ultimately, it’s important to remember that saving money is not about being frugal or cheap. It’s about being smart with your finances and having enough resources to handle unexpected events.
If you have savings in place, you don’t have to worry about how much money you’ll need for emergencies or big purchases because they’re already taken care of!