Carpe Diem means seize the day in Latin. There are people who decide to live their lives by this mantra. These are people who do not believe in saving or planning for the future. Unfortunately, this attitude can bring serious consequences. According to statistics, most Americans do not have enough money in their savings account to cover a $1000 emergency. That is a sad fact considering that we are the richest country in the world. This means that people are earning more than what they need, but they are making unwise decisions with the money that they are earning.
Why Save More
Money is like insurance. There is really no way to know what will occur in the future, but when you have enough money saved to cover your family for at least 3 months, you can rest assured that you will be able to weather the storm. Apart from that, savings are what allow you to cover yourself if you want to travel, buy a house or car, or splurge once in a while. Saving money is also wise for other big expenses that are inherent to life. This can include your children’s college costs and also retirement. On the other hand, some people save to help pay down their debts, such as mortgage payments, student loans, or loans from direct lenders. Putting money toward repaying these debts can set you up for financial success down the road.
The Value of a Budget
A budget is a way for you to take control of your money. When you have no budget, your money tells you what to do. When you have a budget, you tell your money what to do. Once you make a budget, you have to be dedicated to keeping it. This means that you cannot go over your budget for any reason. Your budget will change each month according to your plans and the needs of your family. Be sure to add in money for recreation. If you make your budget too tight without allowing for occasional wants, there is no way that you will stick with it, so you want to be reasonable.
The Best Ways to Save
There are several different ways that you can save money. In order to save money, you have a variety of options. A side hustle can be a great way for you to increase your income. This can be a night job or a job that you can do on the weekends. Instead of adding on another job, you also could find a job that will pay you more for what you already do. Increasing your income is the fastest way to increase your savings.
Make Savings a Part of your Life
One of the best things that you can do is add savings to your budget. When you have savings in your budget, it will be paid monthly just like a bill. It is wise to first get enough money in your savings account to cover your family’s expenses for 3 months. Once you do that, you can begin to start investing 15 percent of your income. At the same time, you want to begin to put a portion of savings away for your children’s college as well. Saving should be the first thing that you do after you get your check. When you regularly pay yourself first, you will have the funds that you need to cover yourself in hard times. Developing a savings concept can be tough, but it is the key to acquiring wealth and escaping poverty.
Subscribe to Jebiga for a dose of the best in gear, design, rides, tech and adventure.