Why Saving Early is the Best Financial Decision You Can Make
I am a believer in saving money. It doesn’t matter whether you have big plans or not. When you save, you are promising yourself something. By so doing, you say “I hold my future dear.” That’s why I always stick to the rule: save early and save often.
The greatest thing about saving is that it does not require a lot of money to start with. Even if it’s just a small amount, it’s still a start. And believe me, every little bit counts.
One of the first things I was taught about saving is compound interest magic. It is like watching your money grow on its own. I remember when I opened my first savings account. It was surprising to see that my money in the bank increased on its own without me making any extra deposits.
I know now that some savings accounts are different from others. However, most lucrative ones will earn you interest on your money. And the good news is that they are FDIC insured. Meaning your money remains intact come what may.
However, saving isn’t only about near-term objectives. It as well involves taking into account the future. That’s why I began putting money into a retirement account as soon as I could. Retirement though far off should never be too late for one to plan.
Hence, I decided to invest in an IRA and 401(k). They are special accounts meant for saving toward one’s retirement. The sooner one starts doing this, the better it is because of something called “compound interest”.
Compound interest is magical. This is when the money you have earns interest that also earns its own interest and so on. The more time your investment has to grow, the higher amount it will be when you retire.
Therefore, one should start saving now even if they are young and retired seems like a lifetime away. I assure you this shall save your future self from woes.
I’m aware of how hard saving can get. There is always something else I want to spend my money on. However, when I prioritize saving it’s much easier to follow through with it.
Doing automatic transfers from my checking account to my savings account has really assisted me. Therefore, I don’t need to remember about it because it happens in an automated manner.
The other thing that’s helped me is setting aside specific funds for saving. When one has a vacation in mind, new car or retirement goal; it becomes very easy to save.
Lastly, I try to recall that saving is not a sprint but rather a marathon. What matters is not how much you save on daily basis but how frequently you save on long run.
Now if you’re considering saving, here’d my advice, start now. Whether you can save little or much is not important; just commence! Your future self will be glad with that.
Posted Using InLeo Alpha