5 benefits of saving money
If you’ve recently started work and have lots of expenses every month such as rent, school fees, family needs including loved ones and travel costs, it’s all very easy to give valid excuses and push saving to the bottom of your priority list.
Saving can feel like one of those unpleasant things that are likely to happen in the future but that you don’t have to worry about now – like listening to Radio, buying comfortable shoes and feeling obliged to make creaking noises every time you sit down.
After all, why not enjoy what money you have left every month now, and worry about tomorrow later?
But, stop there a moment. Although making the most of the present is important, there are plenty of good reasons you need to look out for your financial future too. Here are five things you should ponder on moving forward.
1. You’ll be financially independent sooner than you imagine
Unless you’re happy to rely on the Bank of Mum and Dad (Parent) for handouts forever (and they may be less happy than you about this) you’re going to have to stand on your own two feet pretty soon financially. Building up a savings nest egg can help you achieve this aim, as you could use these funds to help get on the property ladder, or to pay off your school fees.
2. You won’t have to worry if you’re hit with any unforeseen expenses
At some point, all of us face a hefty bill we hadn’t planned for, whether it’s to repair our car or replace a broken laptop. If you’ve got savings in place, you can use some of these to cover costs, without having to turn to look for loan or family members to make ends meet.
3. You’ll have financial back-up in place if you lose your job
Suddenly finding yourself unemployed can be frightening, but it’s something many people will experience at some point. Having a savings buffer in place to help cover your living expenses while you find a new job can provide you with real peace of mind.
4. You’ll be prepared if your circumstances change
Getting married or having kids might be the last thing on your mind right now, but as you get older your priorities might change. Big life events such as tying the knot or bringing up sprogs will be that much easier if you’ve got some savings available.
5. You’ll be more comfortable in retirement
When you start the savings habit, it pays to think about the long-term, as well as what might be just around the corner. The state pension is unlikely to provide you with enough income to cover all your costs when you eventually stop work, particularly as the age at which you’ll be able to claim it (@ 50 years) and what you get is moving gradually further away, so the earlier you think about retirement planning the better.
You don’t need to have thousands of naira available to start the savings habit.
Even putting a small amount aside every month can make a real difference over the long term. We have capital building plan for every level of saving your income can handle.
Alternatively, if you’re happy to accept a level of risk and want to start investing in the hope of generating higher potential returns than capital building can provide, you could think about putting some money into investment plan.
Before making financial decisions always do due diligence, or talk to us. We are hear to advise you all the way.
Source: Virgin Money