- We lack discipline
Offers and opportunities to spend are constantly present. Previous decisions to put savings first have been short lived.
We may have started with the intention but then as the savings balance grows some ‘Great Deal’ tempts us to spend it.
Instead of keeping the building up of a ‘Rainy Day’ fund the priority, we use the money and default back to point 2, assume if we need it, that we will be able to just borrow it.
Essentially now just living for today hoping tomorrow will take care of itself and someone else (your bank or finance company) will come to the rescue.
Three reasons to start today
- You are in control of your money
The discipline of saving means you are in control of your money rather than money controlling you.
Your engagement with other financial decisions increases rather than happening out of routine or habit. A savings capacity increases over time as you find additional ways to save money through adjusting expenses.
These additional ‘savings opportunities’ reinforce your belief that saving is possible.
- You have choices
When committed to repayments for personal loans, overdrafts, Flexi-Pay arrangements etc, finances can become squeezed and as a result choices are reduced for things that may be important to you.
Savings provides the ability to navigate the unexpected without the need to do so on someone else’s terms.
At times it may still be practical to use a loan however you are doing so out of a choice not a necessity. That choice means the decision to borrow at any time is because it works to your advantage.
Cash also means you can negotiate on price with most purchases.
- Life has less stress
Financial worries is one of the main contributors for stress. Having a ‘Rainy day’ or ‘Emergency Fund’ removes stress because you are equipped with time to plan.
Suddenly finding yourself off work, having to consider a larger than normal living expense such as a mechanical breakdown or dentist bill will always be stressful if you now have to figure out how to fund it or how you can afford it.
Having savings means you have time to step back, evaluate options, shop around for prices and make an informed decision.
The ability to step back and work through your options often saves you more money because you aren’t obliged to your only option being the one who will finance your need.
Having control of your money, choices and less stress is something everyone should be able to enjoy.
Establishing a ‘Rainy day’ fund is the perfect place to start.