The big question with money nowadays – save or spend – is one that is doing little in the way of aiding people around the globe in their financial situations. In fact, the more people try to decide what to do with their money, the farther into debt they will normally get, as they tend to spend while they’re deciding. Some argue that it’s better to immediately put money into savings, even if you have outstanding dues; some argue that savings is pointless and that if you have the money, why not spend it; and then there are those select few who truly see the benefits – mental and tangible – of putting money into a savings account to save for later.
While paying off debts may seem like a bad choice if you are just now deciding to look into savings, as it will seem as if you are getting nowhere, it is always best, and usually should come first and foremost on the path to financial security. Once debts are out of the way (or to a level that you deem reasonable enough to focus on other things), it is time to start putting money into savings. Having money set aside will do a few things for you – all positive – and is the best way to take the first step on the road to being financially healthy.
Having money in savings will mean a few things:
1) You’ll be able to feel more secure about spending money in your regular account(s), knowing that you have money in savings.
2) You’ll be able to feel more secure about the future, knowing that if any debts or unexpected payments – burglary, car accident, fire, etc. – come up you have money put away that you can pull out.
3) You’ll gain more interest in a savings account than your normal account, giving more incentive to keep more saved away, which will also add to the benefits of the first two incentives.
Living without having a constant back-up plan in mind if things decide to turn sour, as they sometimes do, is simply foolhardy. In the era we live in, without money, every part of life becomes stressed, harsh, and unforgiving, so it’s always nice to know that you have something there to hold you up if you fall. Putting money into a savings account will help you get on the right track, and will speed you along the road to being financially healthy and happy. Studies show that those who start saving at an earlier age are actually six times more likely to attend college, and it has been found that families that have money in savings are significantly more likely to be able and willing to put their kids through higher levels of schooling, so if you’re on the wrong track money-wise, it’s never too late to get started and get back on stable ground.
If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much. -Jim Rohn