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Top 5 Reasons To Start Saving Money Early – Let’s be honest. Saving money is not always the easiest thing to do. Most of us are hardwired to spend everything we have. But why not try saving that money instead? Especially if it could lead to financial stability later in life. Saving money now can bring along benefits you never realized. Let’s find out how below with these top 5 reasons to start saving money early.
1. You Have More Freedom
By saving early, you are positioning yourself for a better future with more flexibility later in life. If you start early enough, you can have a down payment saved up for a home when the time comes. You could even have enough saved to cover your child’s college tuition – all because you made the intelligent decision to start saving on the early side. By doing so, you are able to pay off your financial responsibilities early on – and that means a whole lot more freedom for you.
2. It Is Costing You More If You Start Late
By putting saving off until ‘later’, you are not doing yourself any favors. In fact, you are costing yourself more. ‘Later’ may never come, and all the while, you are leaving free money on the table (and who in the world wants to do that?) You are passing on free interest earned on your savings and choosing to forego 401k contribution matches by your employer. Do not be that person. It could cost you more than you will ever know!
3. You Are Prepared For An Emergency
Emergencies occur when you least expect them. No matter how much you try to control the things around you, emergencies will happen at some point. The best thing you can do is get ahead of the situation before it happens. The best way to do that is to put money away in savings at an early age. It paves the way to having an emergency fund set up and ready to go in your time of need.
Start with saving $1,000 in your emergency fund. Then build it up to 3-6 month’s worth of expenses. If an accident happens or you lose your job, your savings will be able to cover you for a while – all because you started saving early.
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4. You Earn More Interest
ANY passive income you can earn on savings should be scooped up with open arms. Most banks offer interest on their savings accounts. Some offer much more than others. If you wait to start saving, you are losing out on interest you could have been earning for years – or even decades. Choosing to put off saving until ‘later’ is costing you money. Do not let that happen.
5. You Earn More Money On Your Retirement Fund
Most employers will match your 401k contributions. I cannot stress enough how important these funds are! We are talking about the money that will carry you through life once you retire. Your goal is to have your 401k built up as much as possible before you retire.
To do that, you need to start your savings for your 401k fund as early as possible. Make the biggest contributions you can afford and take full advantage of your employer’s matching contributions. This is free money! Saving for your 401k late can cost you tens of thousands of dollars. There is no way to get that money back. Start saving for your 401k now. Do not put it off any longer.
If you do not have a savings account or a 401k, please open one now. There will come a point when you rely on these savings. Allow yourself more freedom and prepare yourself for emergencies. Take advantage of interest and employer 401k contributions. Do away with unnecessary worry in your life by giving yourself financial security. Start saving during early adulthood and watch the magic happen.
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