I have never really asked myself why money saving matters so much to me. To prepare the first post for my new blog Savingchamps, I decided to give more thoughts on this question and here are the key reasons why saving money is important for us:
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• Saving money means having more financial resources to cope with unexpected events, such as losing a job or getting sick.
Despite our wish for the best, the unfortunate events do happen. Having money saved won’t solve all the issues, but it gives me peace of mind and allows a better chance of getting life back on track. I am a planner, so I’d like to plan for things in life, including those unexpected things. Saving money for those events is a critical part of the plan.
• It gives me more options and allows me to plan for and to achieve bigger personal or family goals.
It gives me more options and allows me to plan for and to achieve bigger personal or family goals. We have many goals, including some big goals, such as studying overseas, buying a house, and retiring early. A single month’ salary cannot help me reach the goals, but years of savings can. The more money I can save, the closer I am to my goals.
• One important reason to save money is for my retirement, even though it won’t be in the very near future.
The money from social security can provide very meager income. Besides, I can only get the social security benefit when I am in my 60s. People must look for other sources such as their own savings or investment to help fund retirement. According to Dr. Ronald Wilcox, author of Whatever Happened to Thrift?: Why Americans Don’t Save and What to Do about It, when it comes to money, we need a little bit of realistic pessimism about our future to adequately determine how much money needs to be saved.
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There are many ways to save money, but the first step is always to know why you are saving and being willing to do it consistently. Otherwise, it is a battle that you will definitely lose. Let’s face it, money saving is way harder than spending. Saving requires taking deliberate and planned actions, but it doesn’t have to be drudgery. In fact, a survey of American adults shows saving money is one of the best habits to increase happiness.
Learn More about Thrifty Living
Whatever Happened to Thrift?: Why Americans Don’t Save and What to Do about ItLiving a Beautiful Life on Less: The Blissful and Domestic Guide to Food, Fun, and Finances The Recovering Spender: How to Live a Happy, Fulfilled, Debt-Free Life