For many people, having the chance to start earning their own money is a welcome relief and an exciting time. Having a source of income is great, but it’s also important to keep in mind that there is also a responsibility to make sure that one uses it wisely. While keeping up with expenses and paying debts off is essential, something that should be prioritised is saving.
Understanding why saving is so important is a good place to start.
When you are at a stage when you can fully make sense of what your actions mean, then you are more likely to make smarter financial decisions.
Saving involves actively making sure that you take a portion of your earnings and set aside in order to finance a goal or to use in cases of emergency.
Essentially, saving gives you financial freedom. It provides financial security and simply makes your life easier.
More reasons why saving is so important:
Having cash available in times of emergencies is vital. You have a safety net should something unexpected happen. You won’t have to rely on personal loans or borrowing money from family and friends.
Set yourself some tangible financial goals and save steadily towards them. The reward at the end of it all will be great.
Saving makes it easier to take risks, like starting a business. Having the financial backing you need to get the business off the ground will be useful. It gives you the freedom to explore new opportunities, unlike if you were starting from scratch, having to finance your dream in other ways.
You have the freedom to live life on your terms. Think about having the freedom to go on holiday whenever you want and not having to stress about finances.
Keep in mind that it isn’t always easy and requires discipline and determination, but with the right tools and processes, it can be done.