Advantages of Starting Your Savings Early

Rainy days. As a Portland, OR, native, I can assure you that they happen, and they happen regularly. As a college student, I can guarantee they usually come at the worst possible time, when you expect them the least. As an amateur weather forecaster (lumpy clouds mean incoming rain, right?) I can definitely claim that you have a few rainy days coming yourself, and you can prepare for them through saving money now so you don’t have to worry later.

Savings accounts, unless intended for some specific purchase, are usually meant to provide for retirement. If retirement seems endlessly far off, as it often can for younger members of the workforce, I would recommend you not be fooled.

Adding money to a long-term savings account has its advantages starting here and now. Let’s look into a few.

Peace of Mind

Having a savings account with some added padding for financial rainy days would have been a means to avoid money arguments and stressful evenings of planning in my home growing up, allowing for greater peace of mind. You may have had similar experiences in your family now or growing up, and so we find that peace of mind is one of the several benefits of starting a savings account and contributing to it early on.

When rainy days happen, you already know you’ll need some kind of reserve fund to cover the cost of your emergency expenses. Say you suddenly need dental work, for example. If you’re one of the many thousands of uninsured Americans, a savings account can make the difference between paying for your root canal immediately or going into debt to manage the immediate cost.

In short, starting to save now can mean not only the comfort of knowing you’re working toward a long-term financial goal, but the security of knowing that if the unexpected becomes reality, you’re able to handle it.

Bettering Yourself More Easily

Alongside peace of mind is the benefit of lowered stress and elimination of the need for emergency measures when financial needs strike unexpectedly.

If you’re not preoccupied with emergency loans and immediate solutions due to having a reserve savings fund, you’ll be able to both take care of and improve yourself more easily. Here’s what I mean:

When your finances are secure, you’re able to devote more time to self-maintenance, allowing you time to cook healthier food, rest more soundly, and keep a general state of mental wellness that promotes good health and longevity (allowing you to actually make use of that retirement fund someday). You’re also in a better position to adopt and develop hobbies, following your interests and gaining useful skills.

Adopting Financially Savvy Habits

The earlier you start saving, the more interest your savings will accrue. Over 40 years, your savings account has the potential to multiply by an average of about ten times, according to S&P Index Services.

Furthermore, in order to save, you have to take on a good practice of budgeting your incoming funds and managing your cashflow carefully. Anyone who routinely practices this will tell you that simply being aware of your funds in this way and making conscious decisions about their allocation within your lifestyle allows you to end up with extra that you never would have noticed otherwise.

You don’t have to make huge contributions to your savings fund to make it a suitable umbrella when rainy days arrive. You just have to make consistent ones. Let’s try it. Make it clear that when the rain comes, you’re ready to get out and dance in it.

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