5 Reasons You should start Saving in Your 20’s July 25, 2017 Posted By MCB - Arif Habib
It is never too early to start saving, no matter what anyone tells you. There is a general perception that saving is something only an older age group needs to do. However, this is not true. Saving money is one of the best ways to ensure long term as well as short term financial stability and the earlier you start, the better it is. Young professionals especially must plan financially and take into consideration that life will throw curve balls.
Here are five reasons why you should start saving in your 20’s:
- Takes Care of Your Expenditures: Tired of hearing your parents tell you that you’re wasting their hard earned money on a vacation, the new iPhone or a car? Earning your own money but lose track of how it is exhausted in a flurry of eating out, shopping trips and weekend plans? This is exactly why you need to save and invest. Doing so will allow you to take care of all your miscellaneous expenses without you getting an earful from the folks or your conscience.
- Disciplines Your Habits: Making the conscious decision to start saving early disciplines your habits. You start to make spending choices which are more financially reasonable. Rather than saving the money you have left each month after all your expenses, set aside a little bit at the start of each month to have disciplined savings.
- Prepares You for Emergencies: Sudden hospital or utility bills lined up unexpectedly? Saving early ascertains that you have a safety net which you might need in case of emergencies. No one wants to be stranded on the shore in case of an emergency and saving a little amount of money from your paycheck every month saves you from facing this dilemma.
- Waiting is Wasteful: Waiting to save can actually cost you money and have a great impact on the amount of money you are left with for your various expenses. The amount of time you wait can directly affect the annual returns you receive hence affecting your little nest of money in the long run. It is also wise to understand the concept of compounding. Compounding basically means that the investments you make are reinvested giving you doubled returns. This process is beneficial because you get returns on money that is sitting idle in your account.
- Retirement Seems Less Dreadful: Retirement seems like a dreadful prospect to most people. However, it does not necessarily have to be. If you start saving early, you can have financial security and will not have to rely on anyone else to take care of your expenses. It is a good idea to invest money in your 20’s via a trusted investment company. This will enable you to gain a considerable amount of returns by the time you retire.
Saving and investing at an early age can save you a lot of unwanted trouble. Financial security is a blessing not many people can afford. Saving money is one of the best ways to ensure financial stability for the future and the earlier you start, the better it is.