Starting to save as soon as now is one of the best things you can do for yourself.
You have to start saving money for yourself. "Why?" you may ask.
Well, saving helps you prepare for both the unexpected and the expected. Talk about emergencies, retirement, personal development, and so much more.
A future with financial security is a perfect reason why you need to save. Furthermore, being financially prepared can be one of the best feelings. You'll be able to do whatever you want; buy a house, go on vacation, enrol for a course or even quit your job for a different personal venture.
However, you will often hear people urging others to enjoy their money now and not save, thinking that they have all the time to save. But nothing could be further from the truth, especially if you plan to be prepared for emergencies or retire with dignity.
Choosing to start saving now will prepare you enough for the rest of your life. You will be able to take risks, experiment, and still be ready if things go sideways. With enough savings and investments, you will live a worry-less life with a lot of freedom.
For some people, saving significant cash can be a challenge, especially if you live paycheck to paycheck or have too much debt.
But keep in mind that small amounts of money accumulate with time. Plus, you can find other ways to supplement your income.
As such, it requires a lot of discipline and sacrifice, which may drive people to take extreme actions, but it is the best thing to do.
Trying to get the inspiration to get started on saving? Here are some good reasons to start saving today.
Some people don't start saving immediately they start earning a living or investing for retirement because they claim not to have the know-how. It might be overwhelming initially, but you can learn how with time.
After getting over that difficult phase, you can create a habit of continuously contributing some of your income to your savings account.
However, the sooner you begin saving and investing, the more it develops into a habit and the easier it will be to save. Doing this will create good financial habits in you that will be beneficial well into the future.
A growing number of people choose to live a minimalist lifestyle since they realise that less is more. They now live in smaller houses, do not purchase too much stuff, and think before buying.
Doing this makes them spend much less, therefore, having more to spend.
Adopting a minimalist lifestyle is challenging and not for everyone. But, acquiring more things does not necessarily mean that you will be happier. It just might add more stress and debt.
When you learn how to live with less, you'll discover that you won't need to spend as much money as you imagined.
One of the other things you will hear about saving money is that it's not fun. You might hear these myths.
"I can't save because that means eating githeri and spending weekends in-house."
"It's better to eat your money now. The future will take care of itself."
You probably need to change your mindset if you think that spending money and not saving it will bring you more happiness.
It would help if you found a comfortable balance. You can have them all; spend, save and enjoy life. It's not one or the other. It is about knowing what you can afford and thinking about whether a purchase will benefit your life.
There are so many ways to enjoy life while saving money. Indeed, you can see your friends, have fun, go on vacations, and many more, all living within a realistic budget.
Instead of going to fancy restaurants four to five times a week, you can make meals with your friends or family.
Instead of going on a high-cost vacation, you can go on a road trip or have a staycation.
There are so many ways to live cheaply and still save.
Saving is great, especially when you begin investing. Time is an essential factor in investing because of the multiplying effect of compound interest.
It is one of the reasons why you should begin saving now instead of later.
Compound interest is when your interest earns interest. This results in your money turning into a more significant amount a few years later.
It is important to note that due to inflation, the Ksh1,000 you have now will not have the same value ten years later. Instead of keeping it safe under a mattress, you can choose to invest it so that it can give you some extra money later.
If for example you are 30 years old today and expect your 2-year-old to be joining college in 15 years time when they turn 17, you can save a lump sum of money today and let compound interest grow your education fund for 15 years without needing to top up.
If you put 100,000 at an annual compounding interest rate of 10%, in 15 years you’ll have Ksh417,724 saved up - which may be close to what four years of college education costs.
Your saved money grows on its own!
There are some expenses you can't avoid. School fees, business losses, etc. cannot be evaded even if you take loans to cover them.
Having a financial crisis could eventually result in health issues such as insomnia, anxiety, stress or even worse conditions.
Saving money is critical for getting peace of mind. You tend to enjoy life a bit more when you know that your finances are under control.
Saving is, therefore, an important tool that can help you secure your future money-wise.
Having a job is good. It makes you feel safe and secure, but you don't know how long you will continue making money in that job or how long the job will last.
Yes, having a full-time job, running a successful business or having some investments going your way may instill an inflated sense of financial security.
But the reality is that the risk of total loss of income, including business and employment income is always real. Without overstating its effects, the Covid-19 pandemic made the possibility of this happening very apparent.
You can never be too safe or too smart that there is no chance of losing your main source, or even all sources of your income.
Too many people think they will always work at their job because they love what they do.
But what would happen when you are no longer able to work? What if your company closes down, or you become incapacitated?
One reason people save money is that they realise that nothing is guaranteed. So you would instead save than spend every coin you have.
Everyone surely would want to pass on something meaningful and of value to their loved ones, especially the children.
You want to take care of your kid's future even when you will be gone. Therefore, it is crucial to plan what kind of legacy you'd like to leave behind for your kids in advance.
Often, it is not what's left that is most remembered, but how it's been left and the feeling of continuing a legacy that imprints into their hearts. Planning your legacy as early as now will ensure a clearer and smoother transition of your wealth.
Saving now and investing will ensure that you leave a good legacy for your loved ones when you are no longer physically present.
There are so many other different reasons starting to save now is essential, and they all point to one thing: saving will make your life much better.
Saving money will give you peace of mind, allow you to chase better opportunities, and the financial freedom you desire. If you haven't started yet, why don't you create a budget and ensure a category to save money is included.
Start now and start improving your life.