Benefits to saving money: 12 incredibly positive reasons to save. Highlighting the obvious and less obvious reasons to be a money saver. This article may contain affiliate links.
There are obvious benefits to saving money, such as being prepared for emergencies.
But there are many less obvious benefits that people often overlook.
Far too often, people look at saving money as subtracting from their lives instead of adding to them.
In this article, I will show you 12 incredibly positive reasons to save. I aim to highlight the obvious and less obvious benefits to saving money.
Let’s get started.
Benefits To Saving Money: 12 Incredibly Positive Reasons To Save
Benefits To Saving Money: 12 Incredibly Positive Reasons To Save
1. Prepared For Emergencies
One of the most obvious benefits to saving money is that it prepares you for emergencies.
Simply put, you just never know what is going to happen.
At some point in your lifetime, life is going to throw you a curve ball.
That could mean being prepared to pay for travel expenses for a funeral. It could mean that you are prepared for worse health. Alternatively, a global pandemic could occur that causes unprecedented change. Perhaps you find yourself in need of a mini-retirement if some sort of unforeseen circumstances arise.
The bottom line is that it is nice to be prepared for when these curveballs come. And believe me, they will come.
Related article: How Much Emergency Fund Should I Have?
2. Prepared For Job Loss
Of course, a job loss could fall under the emergencies category.
But I think a job loss is a big enough point to deserve a category of its own.
Because if you lose your job and have no savings, you are screwed.
The worst case scenario is you could lose everything.
The best case scenario is you could be forced into a garbage job.
Furthermore, as much as you think your employer cares about you, you are probably replaceable.
If a bad enough global event was to occur, they might not be able to afford to pay you.
That’s why it’s better to transfer some of what they pay you to yourself each pay. Pay yourself first.
It’s better than being at an employer’s mercy.
3. More Free Cash Flow For Spending
Many people think that saving money subtracts from their life.
But that’s only because they are not disciplined enough to know what saving money feels like.
In truth, saving money actually makes spending better.
Spending money is more gratifying when you are not leaving yourself short.
Also, you appreciate something more when you have to anticipate buying it rather than buying it on an impulse.
4. Gain Confidence Through Disciplined Behaviour
Another one of the less obvious benefits to saving money is gaining confidence.
In short, having money saved will make you a more confident person.
And it’s not a superficial type of happiness like you would think. The confidence is gained through disciplined behaviour.
Most people spend money to look like they’re doing well, but they are really just insecure.
By sticking to a plan, saving money, and being successful at your plan, you can become a more confident person.
5. Have Money Saved For Retirement
To put it bluntly, you don’t want to be nearing retirement age and still be forced to work.
That can be an ugly situation.
Just imagine being more tired than ever, less qualified, less adaptable, and in worse health, but you still have to work.
When you are nearing retirement, you should only have to work on things you want to work on.
So, the next time you decide to blow your entire pay cheque, think about helping out your future self instead.
6. The Potential To Achieve Early Retirement Or Financial Independence
As a financial independence blogger, I am obligated to mention early retirement and financial independence.
Retiring at 65 and not being forced to work is nice and all. But do you know what’s better?
Retiring in your prime.
This is an obvious benefit to saving money.
If you are like me and you still want to work, you can pursue financial independence rather than retire early.
Instead of working at a job you dislike, you can spend your prime years on fulfilling work.
7. Having Money Is Less Stressful (Being Broke Is Stressful)
People without savings are often angry, envious, and jealous of others.
They blame the rich for their shortcomings and expect handouts, even though the rich provide jobs and work extremely hard for their wealth.
In other words, being broke leads to stress and unhappiness.
Living pay cheque to pay cheque is a stressful way to live.
The fact that broke people exhibit no discipline and lack the knowledge to know how money works, leaves them with envy and jealousy.
Furthermore, being broke is just not a comfortable way to live. It creates unnecessary anxiety.
In some cases, creditors could be calling from collections as bills pile up.
Even if you earn a lot of money, living pay cheque to pay cheque is stressful.
On the other hand, saving money leads to having less to worry about.
8. Happier Relationships
It’s no secret that money problems in relationships cause divorces and breakups.
Meanwhile, couples that talk about money are happier.
Ultimately, saving money will help your relationships by giving you less to argue about.
If the bills are covered and money is not a problem, you can spend more quality time together.
Also, you will be able to afford to do activities together that you both enjoy.
9. Improve Career Opportunities (Start A Business Or Switch Jobs)
If you don’t have any savings, you are at an employer’s mercy until you find another job.
This could mean working crazy-long hours, ass kissing (networking), being taken advantage of, lateral moves, or even low wages.
But if you have money saved up, you can afford to quit at any time you want.
In turn, you have more time to complete a proper search and find a job that you like.
Additionally, having money saved up means you can afford to take on more risk.
For example, if you are entrepreneurial, you can afford to start a business if you come up with a good idea.
In short, saving money improves your career options tremendously. It’s actually one of the best career moves you can make.
10. Ability To Give Back And Help Others
If you are short on funds, no matter how good of a person you are, you are not in a good position to give back and help others.
You will be short on time and money, so you won’t be able to effectively help.
However, if you save money, you can afford to give back more of your future income.
So, by helping yourself financially, you are actually helping others as well.
By not saving, you are just being selfish.
Who is really the greedy one? The saver or the spender?
11. Compound Interest From Investing
One of the main advantages of saving money is that it provides money for investing.
Once you have money to invest, you can earn compound interest on your money, which is really the key to building wealth.
You can invest in stocks for capital gains and dividends, real estate for rental income, high interest savings accounts for interest, or a business for profits.
12. You Have More Independence
One of the things I absolutely love about saving money is that it provides independence.
The more money you have, the more independent you are.
It ensures that you don’t have to rely on anyone, ever.
When you get your first job, you no longer have to ask your parents for an allowance.
When you pay off debt, you are no longer a slave to the lender.
Once you save up 25 times your annual expenses, you are free to escape the 9 to 5.
Therefore, the more money you save, the more independent you are.
Consequently, the less reliant you are on others.
Benefits To Saving Money – Final Thoughts
I write a lot about ways to save money on this blog, and I have made it clear that I am aiming for financial independence.
However, there are also less obvious reasons to save money.
Hopefully these other incredibly positive benefits to saving are more apparent now.
Are there any other positive benefits to saving that you can think of?
I’d love to hear your thoughts in the comments below.
Related Articles On Saving Money You Might Like
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I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric. This post may also contain internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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