The 4 Reasons Why Saving Money Is Important for Financial Success
February 15, 2021 | Louis Tully
If you’ve decided to take your finances under control and already checked out a few of the financial advice blogs, then you know that most of the financial experts agree that you should start by saving money for your emergency fund.
While saving enough money to be able to cover 3 to 6 months’ worth of expenses might seem like an arduous deal, there’s a reason why saving money is important enough that even financial experts who cannot agree about anything else, agree that it takes precedence over everything else.
Why Saving Money Is Important: 4 Reasons
1. Saving Money Creates a Solid Foundation to Build Your Success Upon
Just like a house cannot stand without a solid foundation, neither can financial success. If one emergency can force you into a money hole – then you won’t ever be able to build true financial success, since you’ll always be beholden to the whims of fate.
Setting up an emergency fund creates a short-term cushion that can not only help you handle emergencies without derailing your financial situation, but also allow you to continue steadily building more long-term financial success as well.
Say, you have to pay an unexpected visit to your dentist that isn’t covered by insurance – it’s the type of emergency that cannot be postponed. It will only cause you more pain and more money down the line, plus it’s also usually worth several hundred dollars at least.
And it’s not the type of money an average American can just take out of their budget on a whim. So, here’s a good reason why saving money is important: Without an emergency fund you will blow your budget and devastate all your other resources.
2. Your Stress Levels Reduce When You Have Money Saved
The primary reason Americans are more stressed nowadays than ever (…aside from the global pandemic we’ve been stuck in for over a year now) is due to money problems.
Living paycheck to paycheck with no savings means we’re completely dependent on that paycheck coming in on time and in full – and if 2020 has taught us something, it’s that no job is ever truly secure. Isn’t it a vast reason why saving money is important?
The only security we’ve got is the one we build ourselves.
Having 3 to 6 months’ worth of expenses covered gives you a breather like no other – even in case of the worst financial emergency imaginable right now – the job loss – you have the money to cover your needs, and you have enough to cover it for a longer period which allows you to seek another employment without feeling like your whole life will be upended if you don’t find one in a few days.
3. Saving Money Gives You Freedom to Make Big Changes
Speaking of job loss – the biggest gift money-saving can give you is to leave your job on your own terms whenever you want to.
If you’re unhappy with what you’re doing and would like to leave, the easiest way to do it is knowing you won’t struggle to pay your rent, or utilities, or doctor bills if your next paycheck doesn’t come in.
That’s where an emergency fund comes in – if you’ve got a business idea, or you want to try a new path in life, or you’d like to take a position at a smaller company for a smaller salary – the emergency fund allows you to do that without facing grave financial repercussions.
On the other hand, when you have no money saved…
4. No Money Saved Means Next to No Financial Freedom
Finally, the reason why saving money is important is that no emergency fund means that at least, you restrict your financial freedom considerably, at most – you lose it.
Not having enough money saved to cover your basic needs: 1) ties you to your current paycheck; 2) stops you from building wealth long-term; 3) likely leaves you with no resources to handle financial problems.
How Do I Handle an Emergency Without the Fund?
Depending on how pressing the problem is, you’d likely need to get cash together from sources other than your paycheck. If it’s time-sensitive, taking out a payday loan would be an optimal option.
Why Payday Loans?
Payday loans are the fastest and easiest loans to take out. The entire process takes 30 minutes on average, and you only need just a couple of documents to acquire it:
- A driver’s license or a government-issued I.D.
- A blank check from the active checking account in your name
- Your most recent pay stub
Anyone who’s over 18 and has a steady income – Carolina Payday Loans, Inc. will accommodate all kinds of income and welcomes people with any credit history. This means you can apply and get approved even if your score is bad or outright nonexistent.
How Do I Apply for Carolina Payday Loans?
You can easily apply for an online payday loan from the comfort of your own home by visiting our Home Page and filling out the online form. You’ll be contacted by the loan representative who’ll set up a meeting with you.
You’ll need to bring the required documents to the payday loan near me meeting place. The loan representative will assess your papers and determine if you qualify for the loan. You’ll also need to fill out some more paperwork, and if you’re approved, you’ll get the cash the same day.
These days, people live paycheck-to-paycheck because they don’t think about why saving money is important. The reasons outlined above will help you save the money you may desperately need in the future and ensure your financial well-being.
If you do encounter an emergency and have no savings yet, Carolina Payday Loans, Inc. is ready to give a helping hand when you need it most. Contact us today for more information!