5 Best Reasons to Save Money
When it comes to saving money, there are two types of people-those who save money and those who wish they did. With the rate of saving now at a record low in the United States, it's a good time for those who know they should be saving to think about their saving and spending habits.
1. Desire to retire
Retirement is a long-term goal. Many people can't look that far into the future-retirement happens to everyone else. The ideal retirement goal is to have saved 19% of your income, however, many people of retirement age only have 10% saved, and younger groups, only 6%. Saving the maximum that the law allows into your company's retirement plan will help you achieve your retirement goals.
2. Expect the unexpected
Because emergencies--job, illness, car breakdowns and home repairs--happen to everyone, experts recommend building a savings account solely for emergencies. Having an emergency fund guarantees that you will be able to keep up with your mortgage and other bills for a few months, should a financial setback occur.
3. The cost of education
Public institution costs are expected to reach six figures by 2020-and that means saving for a child's education is more important than ever. Start saving in a 529 Plan for your child's education, and get permanent tax benefits.
4. Living your dreams
Everyone has goals, and many of them take money to accomplish. Whether it's homeownership, a big wedding, a long vacation or a second home, setting goals and working to accomplish them is a mark of happy and successful people. The things you have to give up to make these dreams come true are often insignificant and forgettable.
5. Building character
Those who can learn enough discipline to leave saved money alone and not give in to spending temptation are able to grow and mature. Saving money shows you can maintain control of your life and avoid emotional decision making.
The more you put away, the more you will want to put away. Learning not to spend more than you earn, and maximizing your savings will make your future and retirement much more bright.
