4 Reasons Why You Don’t Need a Specific Reason To Save
Not having a reason to save is no longer reason enough.
To a large extent, you would agree that having more money is beyond your control; but becoming more efficient with the way you spend your money is within your control and this is a fundamental step to becoming financially independent.
The first step to achieving our personal finance goals -simple, but easy to overlook — is that building wealth has little to do with your income or returns on investment, instead, it has a lot to do with your savings rate.
Building wealth relies heavily on the accumulated leftovers after you spend what you take in. What you haven’t realized is that you can build wealth without a high income but have no chance of building wealth without a high savings rate. I hope now it’s clear to you, which one matters more.
For some of the reasons highlighted below, Saving money is by far the most practical route to becoming financially free.
It’s about time to realize that you don’t need a specific reason to save. As much as it is fine to save for a car, a home, or retirement, it’s equally important to save for things you can’t possibly anticipate.
First — Because life is unpredictable, you don’t need a specific reason to save.
It’s great to save for a car, a vacation, a course, or a medical emergency. But saving for things that are impossible to predict or define is one of the best reasons to save.
Because everyone’s life is a never-ending series of surprises, savings that aren’t intended for anything specific can be a buffer against life’s inexorable capacity to surprise you at the worst possible time.
Save. Just save.
Secondly — Saving money eases money-related anxiety and financial security.
To be honest, ever since building a saving fund, I felt less tense when making critical financial decisions. That feeling of having funds tied up is the best kind of support and reassurance you need to live a more healthy and worry-free life.
It affords you the ability to take on more risk than you would normally take as regards some financial decisions such as leaving an unhealthy job, following your passion even when it offers no financial return, and funding your decision to leave your comfort zone just like I was able to achieve mine earlier this year.
Thirdly — Having money saved up gives you time to think.
More often than necessary, it is more rewarding to build a savings target without having an initial goal and then come up with the best option to utilize the fund along the process.
If there is one thing I for certain would be trying in 2023, is to build a savings target based on this notion.
Saving all through the year will allow me to objectively decide and prioritize what to use the money for, out of the many items on my bucket list — To register for my CFA examinations, To upskill in financial modeling, To fund a relocation plan, or to begin investing in real estate.
It’s not a decision I can figure out now so my best bet is to save up pending when I make the decision. So should you.
Fourthly — Saving money affords you the ability to do more later.
There is only a little you can do with the funds you have at hand now and there’s a high chance that saving without no particular reason now, increase your capacity to implement more on your bucket list.
Building wealth requires you to suppress what you could buy today to have more later.
It would be almost impossible to become financially free and build wealth unless you put a lid on how much fun you can have with your money right now.
You must have noticed how often money leaves your hands faster than it comes in. It is up to you to make the most of it when next it comes in, and the key to doing that is to save first, before spending.
Save. Just save.
Regardless of your current level of income, the financial independence you seek is largely driven by your savings rate. After a given amount of income, your savings rate is determined by your capacity to keep your lifestyle expectations in check.
Reading this article on delaying material gratifications might just be the final push you need to save more, so do spare a minute to check it out.
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