Why We Save

Why We Save
0 comments, 15/07/2014, by , in Personal Finance

This post was written in partnership with MyJar

We live in a world where a lack of savings can have a serious effect on how we can live our lives. Without savings as a safety net, losing our job, or coming up against an unexpected expense, could leave us in serious difficulties. For many of us, this is a real possibility, yet we still spend beyond our means. People have become rich promoting unhealthy spending advice, leaving us poor and in debt. However, short term loans from companies such as MYJAR can ne one way to get yourself out of a jam. For every £100 borrowed, you will have to pay back £120 18 days later, which is a 3943% APR. Short-term loans are never going to offer a solution to long-term financial needs that is where regular saving is important.

Real Wealth

You don’t need to be fabulously wealthy to avoid having money worries. Regularly saving even just a small amount and trying not to spend more than you have coming in will make sure that you are in a good position to weather financial storms. Wealth is not about how much you spend, it’s about making sure that you have enough to cover what you need or want to spend. How many times have you heard this sentence before? “It doesn’t matter how much I earn, I still have nothing left in my bank account at the end of the month”. You might even have said it yourself. In the end, spending to match your earnings without putting something aside, will keep you poor. If you want to become financially more secure, the answer may be to reduce your spending in the short term, allowing you to put money aside for the longer term.

Be The Change You Want To See In The World

The best way to teach is to lead by example. In a world that is becoming more and more consumeristic, we want our children to be able to manage their money. Older generations, grew up watching parents making ends meet, stretching humble budgets, and fixing broken items. What will become of the new generations who are watching their parents paying for everything on credit, and generally living beyond their means? The divide between rich and poor has the potential to expand exponentially. This is a terrifying thought, and a reason for sensible behaviour to start at home, giving family and friend a clear example that you can flourish, even without big expenditure and worrying levels of debt.

Short term aim: Invest in yourself.

Long term gain: Show your children how to invest in themselves.

Eliminate Stress

Money worries are among the most common causes of stress and this can lead to having to take time off work. This can just make the whole cycle or worry worse. Worry about debt can niggle away and become the thing that remains constantly on your mind. Sometimes we don’t realise how stressed we are until we pay off a credit card and feel the burden being lifted from our shoulders. The elation you feel from new purchases, is fleeting, and ultimately, only serves to fuel the fire of debt.

Short term aim: Stop impulse purchases.

Long term gain: A healthy, wealthy existence.

Warning: Late repayment can cause you serious money problems. For help, go to http://moneyadviceservice.org.uk

Saving infographic

Saving infographic

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