Every four years we watch presidential candidates run their campaign around things that they will do for the American people if we vote them into the White House. This strategy of campaigning has made the American people believe that we need the government to empower us financially and personally—to, in effect, set us free. Imagine instead if someone campaigned around challenging and encouraging the American people to start making the right financial choices for ourselves: What if the campaign was built around learning how to manage our finances better, or around taking personal responsibility to read and learn about the basic principles of money? Many times we forget that this nation was built on the belief that the American people are capable of meeting any challenge that comes our way, a belief that we have proven to be well founded. Being an avid saver can help you to achieve financial freedom without the campaign promises of hopeful politicians
Here are twenty-two simple and important reasons to be an avid saver:
1. Be prepared for a rainy day.
Challenging times are inevitable, but savings can minimize the problems we face during those times.
2. Have peace of mind.
Having savings somehow makes your pillow much softer when you go to sleep at night.
3. Increase your confidence.
Knowing you have money set aside gives you the courage to invest in new business ventures or to take that family vacation you’ve been putting off.
4. Allow your idea machine to work.
Your idea machine shuts down when it’s constantly consumed with financial struggle and worries. Having savings gives your mind more clarity to come up with great ideas.
5. It simply feels good to have savings.
6. Saving is the right thing to do.
The right thing to do is to simply live below your means for as long as you can. It’s tough, but it’s the right thing to do for your family’s financial future.
7. Set yourself free.
We all want to have control of our lives and the freedom to pursue our passions. Savings provides you with both.
8. Live your dreams.
9. You can jump on good opportunities when they arrive.
When the market tanks or an economic crisis happens, people with savings can turn it to their advantage through smart purchases and investments.
10. Cash is king!
11. Save for retirement.
Very few like to think about retirement, but the time sure comes sooner than most people believe. Being prepared for retirement makes the transition a breeze.
12. Save for a down payment on a house.
The days of putting $0 down payment for a house are long gone. Even if it comes back, it’s not the best thing to do financially. A down payment is a smart investment.
13. Afford college tuition for kids.
Paying for a portion of your kids’ college tuition can give them a leg up on their financial future by lowering the amount of loans they need.
14. Family vacation!
This is more important than most people think. Going on a vacation with the family rejuvenates everyone. It’s always good if it’s a paid vacation through your company; but even if your company doesn’t offer vacation opportunities, it’s important to set aside time and savings to make family trips happen.
15. Purchase a new car
How annoying is it to have a car that constantly breaks down on you? Speaking from personal experience, a clunker can be costly, irritating, and even dangerous.
16. Get your next promotion.
Employers nowadays promote executives based on their personal financial situations. Many times they prefer to promote individuals who need the money the least.
17. Savings prevent you from making emotional decisions.
18. Set a great example for your children.
It’s no coincidence that the financial habits of parents are passed down to their children. Parents with financial discipline usually raise children with the same habits. Children know when parents have financial difficulties.
19. Keep in touch with your children and grandchildren.
J. Paul Getty once said, “Money isn’t everything but it sure keeps you in touch with your children.”
20. Give back freely.
Some of the most world-changing charities were started by individuals who had the discipline to save money.
21. Help aging parents.
Life expectancy is increasing year after year, which means many retirees may outlive their savings. You may not be able to give your parents the entire $2,000 a month that they may need, but even $500 a month could make a major difference in their quality of life.
22. If by any chance the Lakers go up for sale you can be a part-owner!