Why It Doesn’t Always Make Sense to Save Money

Saving and making money seem to be two of the most important things on people’s minds. Whether they’re fresh out of college or slowly reaching their retirement, saving money is something that is ingrained into us as human beings. But that’s mainly because of what we’re taught. Our parents tell us that we have to focus on saving money in order to live happy lives, but there’s a massive contradiction in that saying alone: how can we be happy if we live for the future and not the present?

Save Money

Of course, there are some reasons to save money. If you don’t save up, then you won’t have enough money for the deposit on a house. If you don’t have savings, then you’ll be out of luck when your car breaks down and your wallet’s empty. If you want to send your children to school, then of course, you’ll need to hold onto your money.

However, it’s worth pointing out that there’s a difference between saving with a goal in mind and saving for no reason at all. If you have to save money for your children’s schooling, then you aren’t going to save money before you’ve even met a partner. But to give you a bit of help, here are a couple of considerations to keep in mind before you start pouring all of your money into your savings account.

Inflation Worries

Inflation happens and it’s something we can’t avoid. As any financial advisory will tell you, don’t keep large sums of money stashed at home or in a bank account. Instead, invest them into assets such as a business, precious metals or even stocks and shares. The value of assets can fluctuate in your favour and they also aren’t as affected by inflation. If you’re going to save money, then save it in anything but the bank so that you aren’t hit by inflation worries.

Debt Concerns

Another concern for most people and their finances is debt. Debt can be a nightmare because it’ll seem like an infinite pit that you just keep falling into. The moment you’re about to pay off a debt is exciting and fulfilling because it’s a lot of weight off your shoulders, but managing to reach that point can be difficult. Instead of saving your money, pour it all into paying off your debts sooner than later so that you can remain debt-free for the rest of your life. Not only does this boost your credit rating, it also means you don’t incur interest which can add up.

Mind Your Happiness

Happiness is often said to be the key to life. It can help motivate you and also give you reasons to go out and work hard. That being said, it’s hard to find happiness when you’re living off cheap food, worn clothing and outdated entertainment. Spend a little on yourself once in awhile and you’ll find that it’s easier to cope with life as a whole. If it makes you happy, spend money on it—just don’t go overboard!

0 comments:

Post a Comment