The thought of saving doesn't excite you? Here's why it should...

Jul 15, 2022

We all know that saving money is really important. Yet there are many people out there who cannot go beyond the sense of gratification which spending gives, and get around to setting aside money for future emergencies, one-off purchases, or for investment.

There are lots of reasons why you should start saving money today. Financial independence - not being completely dependent on your monthly paycheque to sustain your current lifestyle - is perhaps one of the more important ones. Having some savings to fall back on means that you have the flexibility to take major life decisions when the time comes – whether it is to change jobs, get married, or move house. Financial independence gives you the liberty to take such decisions with much less stress.

Saving money regularly will also help you stay out, or get out of debt. Having some funds stashed away will help you to pay off your credit card bills and avoid bank charges. Moreover, if you rely on your savings account to settle one-off expenses instead of using your credit card, you will also be saving money and living a debt-free life in the process.
Using a savings account to build an emergency fund will also help you manage unforeseen expenses such as medical bills, car trouble, house repairs, or some unexpected trip abroad. This will also be a good exercise in helping you maintain a budget and manage your spending routine.

There will be times when you will feel the need to upgrade your quality of life: moving out of your parents’ home to somewhere of your own, or a growing family, or even buying a new car or other expensive item, will require that you have some funds put aside, even if it is just to put down that initial deposit as part of a loan.
This also applies to short-term objectives, like your next trip abroad. Developing an effective way to manage your income and expenditure, and putting some funds away regularly, will give you the confidence to be able to gift yourself with that short weekend break as a reward for your determination and discipline.

Today’s economic uncertainties mean that you might need to prepare your own nest egg for retirement, thus ensuring that you can continue to enjoy the kind of lifestyle you have right now. This requires considerable planning, and the first step towards reaching this kind of goal will be to start putting aside money for this today. The same kind of planning will need to go into having a fund to support your children through their tertiary education, especially if their ambition will take them abroad to further their studies. Your kids can also be taught to save and contribute towards their own education – and starting this habit early can actually change their life as well.

Perhaps from a mental health perspective, the biggest bonus of developing a savings habit is that of living a more stress-free life. Building a savings fund will not only provide you with greater security – it will also mean not having to compromise continually on your life choices, while giving you unparalleled confidence that you are making smart life decisions – thus making you a happier person in the process.

If you haven’t inculcated a habit of saving a part of your salary yet, start with small steps and set up a weekly or monthly saving plan, and open a savings account. Moreover, keep these savings separate from your everyday bank - this will reduce your temptation to ‘dip’. Also, try to pick an account with a low minimum balance. You don’t want to put pressure on yourself by having to maintain a high minimum amount in your account. An account with around a €100 minimum balance would be a reasonable option. Cut down on unnecessary expenses and make wiser spending choices to add more to your bank balance on a regular basis.

By having a clear goal or purpose, you can save more and open up new avenues in life, which otherwise would be difficult, or even, impossible to pursue.