The Importance Of Saving Money – 15 Reasons To Start Saving

Life is short. 

If you’ve had a bad day, this may be your excuse to justify an impulsive shopping spree or yet another take-out. “Life is short. I have money to spare this month. I think I’ll treat myself”. Sound familiar? 

Before we proceed, let’s get one thing straight. You have EVERY right to treat yourself. We all deserve new clothes, fast food, and brand-new accessories sometimes. 

However, if you find you’re impulsively spending more than you’re saving, you can run into trouble fast. If not tomorrow, the consequences of breaking into your rainy-day fund will catch up eventually and leave you wondering… was that impulsive spend really worth it? 

There are countless reasons to save money. The one universal truth to saving is that it will benefit your future. Instant gratification will only get you so far – it’s your thrifty savings and maturity that may just save your life. 

In need of some inspiration to kick-start your savings journey? Let’s take a look at 15 of the most important reasons to start saving today. 

The Importance Of Saving Money - 15 Reasons To Start Saving

Prepare For Retirement

If you’re young and excelling in your career, retirement is probably the last thing on your mind. Like we’ve already discussed,  life is short, and old age and retirement can creep up quicker than expected. 

When your working days are over, you’ll want to enjoy your retirement in comfort. If you start saving early, your investment can grow larger, and you’ll have more money in the pot when you stop working. 

If you’re in your 20’s or 30’s, you can get started with a company pension scheme or begin putting money aside in a separate savings account. According to research from the Federal Reserve, the average U.S citizen retired with just $65,000 in 2019.

For context, it’s estimated that you’ll need around 80% of your pre-retirement income to cover the costs you’ll need in retirement. Clearly, there’s a bit of a gap. 

If you start saving later in life, you could end up needing to put as much as 35-40% of your annual salary into your retirement fund to cover the costs. So, the earlier you start, the better!

Achieve Financial Independence

Let’s face it –  no one wants to live a limited lifestyle because of their finances. Unfortunately, life isn’t always so kind to us, and it can be a struggle to make ends meet. 

However, if you find you’ve always got a little extra money left over at the end of the month, saving some can actually help you achieve financial independence. If you’re not saving regularly, you’re more likely to get into debt, which will keep you shackled for longer. 

If you can put aside a healthy portion of your earnings each month, you won’t have to rely on your monthly paycheck to sustain your lifestyle.

With a healthy savings account to fall back on, you’ll be able to face larger life decisions head-on without worrying about the financials. This could be anything from changing jobs to starting a family. 

Get Rid Of Your Debt

In Spring 2021, American household debt hit a staggering $14.6 trillion. For many people, debt is a frustrating but unavoidable part of life.

If you’re struggling financially and relying on credit cards and loans to get through the month, the debt can rack up fast. With interest rates climbing constantly, this could land you in trouble quickly. 

If you’ve accrued debt that you’re struggling to shift, your focus should be on trying to make payments on time and getting rid of the debt so you can avoid a larger accumulation over time. 

For some, this is easier said than done. However, with some careful budgeting and thrift saving, you may find the potential to save in places you’ve never considered.

From your weekly shop to take out food, you’ll be more comfortable in the long run if you can make the savings now and avoid relying on your credit card forever. 

You’ll Have Peace Of Mind If You Lose Your Job

Peace Of Mind

Losing your job is a terrifying thought. The truth is, we’re living in a time of great uncertainty. As the economy ebbs and flows, some businesses thrive, and others collapse. The harsh reality is that nothing is guaranteed in life, not even your job. 

We promise we’re not here to fill you with dread but preparing for any and all eventualities is a wise decision. If you have a healthy savings cushion to fall back on, losing your job can be a much easier situation to navigate.

You won’t have to worry about paying your bills while looking for another opportunity, and this type of peace of mind is invaluable. 

You Can Be Prepared For Emergencies

Sometimes, things go wrong – usually at the most inconvenient times. For example, an emergency could be anything from your car breaking down, your fridge blowing up, an unforeseen medical bill… either way, being ill-prepared for these expenses can leave you broke and picking up the pieces for months (or years) to come. 

For this reason, it’s ALWAYS a good idea to start saving into an emergency fund. This fund could be as little as a few hundred dollars to a few thousand.

Whatever the number, you’ll be grateful that you won’t have to struggle to make ends meet for the month because of an unforeseen circumstance. 

If you’re not prepared for any emergency, you may also fall back into the dreaded cycle of credit card payments and climbing debt. You can help break the cycle by saving now and giving yourself some extra peace of mind in a time of crisis. 

Save For Education

Saving for education is a BIG expense. Unfortunately, college doesn’t come cheap and the added expenses of textbooks and other resources can get expensive fast. 

If you’re considering getting back into education (or you want to start saving for your children’s education), the time is now.

Researchers from ValuePenguin found that the average cost of college between 2017-2018 was as high as $20,770 for in-state schools and as high as $46 950 for nonprofit private schools. These fees included tuition fees, room, and board. 

Education is undoubtedly no small expense. Saving as early as possible can avoid debt and hefty, unforeseen payments. Thankfully, many colleges offer payment plans.

So, with a generous amount of savings to hand, these monthly payments should be easier to manage, and you can enjoy pursuing an educational endeavor without worrying about the finances. 

Develops Conscious Spending Habits

Getting into the habit of saving regularly can also help you develop more conscious spending habits for the future. 

Learning to save is like riding a bike. The more you practice, the easier it gets, and after a while, the whole process works like muscle memory. When you start saving regularly, you’ll probably notice that you’ll become savvier in other areas of your life.

You may start reducing your food waste, buying cheaper alternatives to your usual branded options, or encouraging others to be more thrifty. The positives are endless! 

Minimizes Financial Risk

When was the time you considered your financial risk? 

The more you save, the more you reduce your financial risk. Investing your money is also an excellent way to reduce your financial risk.

Money can be invested in high-yield savings accounts, dividend stock funds, government bond funds, and more. 

The investment opportunities are endless, and if done right, you can yield some serious profit. With more money to your name, the financial risk reduces properly. 

Ultimately, your financial risk reduces as long as you have more money than you’re spending each month. However, having a plump savings cushion to fall back on will further reduce this risk and set you up for greater financial success. 

You Can Enjoy Life More

If you start saving today, you can enjoy life more – and who doesn’t want that!? 

Think about it. If you’re in debt and working hard to make ends meet, or you have no savings to your name, and you’re at risk of going broke at the next crisis, you can’t relax.

You’re constantly waiting for something to go wrong or worrying about what you’ll do when it happens. 

If you start saving money each month, you’ll have financial security. Financial security develops peace of mind, and with peace of mind comes happiness. It’s a chain reaction that will vibrate throughout your life. 

With more savings to your name, you’ll also be able to take more risks and treat yourself to larger purchases (within reason). Who doesn’t want that?!

Reduce Strain On Relationships

The ‘debt effect’ is dangerous and well documented. Money makes the world go round, and when you’ve got no money to your name, a large amount of debt hanging over your head, things can turn sour quickly, especially if you have a family. 

Debt sufferers experience depression, stress, and the aggravation of existing health issues such as diabetes. The effects also spread into family life. Relationships may become strained and filled with distrust, anger, and stress.

Saving to clear your debt can breathe new life into your personal and familial relationships, and in turn, increase your happiness and well-being. 

Sometimes, financial struggles are unavoidable. However, if you have the resources to save, clear your debt and improve your relationships, there’s no reason why you shouldn’t start today. 

Big Ticket Purchases

Big-ticket purchases are one of the most exciting things in life. Whether it’s a new car, a home renovation, or something more significant, these purchases can bring us the most joy and satisfaction.

These purchases aren’t always made out of desire or pleasure. Sometimes, they’re necessary and unforeseen, and they tend to be the expenses that plunge us into debt the most. 

If you’re saving into that emergency fund we mentioned above, you should be well prepared to cover any unforeseen big-ticket purchases.

However, if the time comes when you want to treat yourself, you may be disheartened to know there’s no money in the pot. 

Thankfully, saving for these purchases isn’t tricky, and you can do it without relying on loans or credit cards. It usually takes a slight adjustment in another area of your life to start saving efficiently, and soon enough, the cash flow starts to increase, and the savings start growing. 

To prepare for a big-ticket purchase, start saving for something smaller. Once you’ve achieved this goal, you can start saving up for a larger big-ticket purchase. As soon as you’ve got a taste for saving and being thrifty, saving for more significant purchases becomes much more manageable. 



Homeownership: It’s the American dream and a massive milestone for many families. According to, the average American house price increased by 16.2% from 2020 to 2021. That’s a HUGE rise, and there’s no guarantee that house prices won’t continue to climb. 

For many people, homeownership is no longer the top financial priority. However, if you want to get on the ladder, you can do a few things to begin your journey. 

Firstly, remember you’ll need to start saving for your down payment. The average down payment is between $10,000 to $15,000.

A few other hidden costs may catch you out, including closing costs, maintenance costs, and furniture costs. In short: put aside MORE than you need (because you’ll probably be spending more than you think!)

As soon as you start saving, choose a high-yield savings account. For example, if homeownership is the main thing you want to start saving for, make cutbacks wherever you can, and save as much as you can spare each month. The costs can climb astronomically, and saving can take years so, the sooner you start, the better. 

Prepare For Your Children’s Future

If you have a family or want to start a family, you’ll want the best for your children. Whether you’re looking to save for their education, their holidays, or a big birthday present, setting up a savings account for your children is one of the best things you can do. 

The need to save may also be more practical. The truth is, children are expensive. From school trips to medical bills, days out, and more, your expenses will increase dramatically when you have a family.

So putting more money aside for their futures, or just to help you make ends meet, is something EVERY family should be doing. 

Not only will this give you peace of mind, but it can help improve your children’s quality of life, wellbeing, and happiness. It’s also a great opportunity to teach them more about saving when they get older, so they’ll benefit from being financially savvy in the future, too. 


Life is hard, but it doesn’t always have to be dominated by work and financial stress. Sometimes, we all need a break – and what better way to take a break than by traveling!?

Traveling is a fulfilling and enriching experience, and it’s one that we all deserve to have, regardless of our financial situations. 

Thankfully, saving to travel doesn’t have to be that hard. If you book flights and transport in advance, you can take advantage of some incredible discounts that can save you hundreds of dollars.

For example, if you’re willing to travel outside of peak times or stay in less than five-star accommodation, you can also make the savings process A LOT more attainable. 

Saving to travel is like saving for anything else in life – you have to cut back in other areas to achieve your goal. Start by drawing up a detailed account of all your outgoings, and see where you can make cutbacks. Depending on where you want to travel to, you could save up in as little as a few months!

Peace Of Mind

Arguably, the greatest benefit of saving is peace of mind. Nobody wants to live a life dominated by stress and live in fear of their own financial security and happiness. 

Practically, saving isn’t tricky. But the truth is, if you’ve lived your life without conscious spending or saving habits, it can be harder to get started.

However, the challenge is worth enduring. Compared to a life without security and peace of mind, learning how to budget, save, and shop sensibly can benefit your life drastically in the long term. Learning to save effectively is one of the most incredible things you’ll ever do.

While we may not be taught the ins and outs of saving at school, it’s never too late to get started. Whether you’re earning a little or a lot, there’s always money to be stored away somewhere. 

Don’t be disheartened if you can’t afford to save a lot. We can’t all afford to put aside the big bucks each month, but starting with as little as $10 can set you up for success, happiness, and a greater sense of accomplishment for the rest of your life. So, what are you waiting for!?

Deborah White