This blog is Part II of United Financial’s “Saving Series.” Check out the first blog in the series Intro To Savings Series and check back each month through April ‘19 for the newest post.
Coming in November: “Pay Yourself First: The Art of Setting Something Aside from Each Paycheck”
Let Us Count the Reasons
Do you have a hole in your pocket? Does your money disappear as fast as you earn it? Regardless of how much or little you earn, there are reasons it’s important to save money. And regardless of your income, you should understand why it’s important to save.
Let’s face it, everyone seems to have trouble saving as much money as they would like to. Spending money is more fun than earning or saving it. But at United Financial, we’re dedicated to helping you learn to enjoy saving money.
One of the best ways to turn your thinking around is to focus on the primary reasons it’s important to save money. You save money because there is something you want and value. When you turn your thinking around you realize that the only way to have money to spend is to save the money you earn!
Here are a few of the reasons it’s important to save money:
- Rainy day fund. Life is full of small emergencies. If you have set aside some money, those little emergencies stay little.
Which is less stressful: taking the car in to have the brakes repaired as soon as they start squealing costs much less than also replacing the rotors, or ending up in the hospital and your car totaled following an accident because the brakes failed?
Of course you could take out a loan or just put the repair bill on your card, but then you’re paying interest, adding to the cost. Having a rainy day fund lets you sleep peacefully at night, knowing you’ve got life’s little emergencies covered.
- Emergency fund. Because not all of life’s emergencies are little, that’s also one of the reasons it’s important to save money. It’s smart to set aside three to six months’ worth of income. Should you lose your job or suffer an extended illness, you’ll have the financial resources to sustain yourself until you’re employed once again or back on your feet.
Even with insurance and other support systems, it’s good to have a cushion to soften the blow of a financial set back. Life is unpredictable. Having a fund to keep you afloat for several months brings peace of mind and helps give you time to recover and get back on track.
- The fun stuff. What makes life worthwhile for you? Is it a family vacation? Is it buying a new car or an RV? Is it filling your bucket list? Not all of the reasons it’s important to save money are focused on the difficult side of life. Life should be fun!
Americans have a reputation for being hard workers. Too many Americans never claim their vacation days. They work, work, work! Don’t forget that we all need time off to rest, to play, and to get away from the daily grind.
We aren’t telling you to spend now and pay later for the fun stuff. That can lead to financial trouble. What we do suggest is that you plan ahead and save money so you can splurge on something that’s just for fun.
- Important life goals. Your biggest goals in life are also the most expensive: a house, college fund, and retirement. Sometimes it can feel impossible to save enough, but at United Financial Credit Union we have strategies to help you reach your goals.
Let Us Show You the Way
When you know why it’s important to save money, it’s easier to set aside money to reach your goals. Remember, with United Financial as your partner, you have a cheering section to help you stay motivated when you’re tempted to give up.
Here at United Financial we also know how to save. We’d be happy to help you set up a variety of savings accounts so you have the money you need for today without sacrificing the funds you need for tomorrow. Here’s what we offer for special savings needs:
- Health Savings Account. This is a smart option if you have a high deductible health plan. There are tax advantages for the funds you deposit and use for eligible expenses.
- Special Savings. What are you saving for? Travel? A dream kitchen? Keep your funds in a subaccount of your Savings account. When you watch your funds grow closer to your goal, it gives you added incentive to save!
- Christmas Club or Vacation Club. We have savings accounts to help you achieve any goal!
For whatever reason there is to save money, we have an account for you! Stop in and learn about our other special savings accounts. We’ll get you set up for savings success!
Links:
https://www.thebalance.com/learn-the-most-important-reasons-to-save-money-2386123
https://www.investopedia.com/articles/personal-finance/031215/why-saving-money-important.asp
https://www.discover.com/online-banking/banking-topics/3-reasons-to-save-more-money/