You’ve probably been given all sorts of reasons to save money. Been told things like “The earlier you start saving the better”. Or come across the 50/30/20 budget rule, which advises you to save 20% of your income. But why should you save a portion of your money instead of say…invest it?
Savings accounts and money market accounts are notorious for offering laughable interest rates. Your money isn’t really working for you sitting in one of those accounts. Nevertheless, many still recommend you save some money.
In search of some unique insight, I asked some well-known finance bloggers: what’s your number 1 reason for saving money? Here are their answers:
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The top reason for why I save money is for my family. Having three growing children means they have different needs that we have to provide for. But beyond that practicality, we want to provide them with different experiences in life, which often brings a cost. We’d rather spend less on frivolous things to provide that for them. That dovetails with our desire to grow our long-term wealth, in which saving plays a key role. Those savings go to various investments or build new income streams so we can retire when we want. It’s not always easy to find that balance of saving for the “future and enjoying life now, but it is possible to achieve.
| John Schmoll, Founder of Frugal Rules |
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“Saving for the future and enjoying life” is absolutely a difficult balance to find. Besides saving for the unpredictable, having a plan for your savings can help you justify it and stay disciplined.
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| Phillip Taylor, Founder of Part-Time Money |
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Money is important in life and there are numerous ways you can acquire it. But dependency breeds misery.
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| Kaitlyn Ranze, Sr. Manager Education and Communication at Nav.it |
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A prime example of savings manifesting itself into something special. Saving doubles as a safety net and fund for personal interests.
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My number one reason to save money is the peace of mind that it gives you. When I was a kid, I experienced what life is like when you don’t have any money in the bank. My parents were living on financial fumes. When you live like that, money is always on your mind. It’s not a healthy way to go through life. Saving up to reach financial independence is a great goal eventually. But the primary reason to be saving a substantial amount of what you make is to create some meaningful margin in your life. The mental feeling that it provides is priceless.
| Joel, Cofounder of How To Money |
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| Jud Kennedy, Head of Marketing at Savology |
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