Yay! It’s pay day! You’ve been working all week for this paycheck, and now it’s time to go live it up (a.k.a. spend every penny you’ve earned). Or, instead of blowing your check in one weekend, you could save some of it for a rainy day.
Wait, what? Why would you want to save any of your hard earned money? You’ve worked hard and deserve to go out and have fun on a Friday night, but part of being a responsible, working adult is having an emergency savings fund tucked away. Here are some reasons why it’s crucial to have an emergency fund:
You might need extra cash. There’s no telling what curve balls life will throw at you. It could be something unexpected, like needing to buy new tires for your car, or it might be something cool, like getting the opportunity to take a mini-vacation with your friends one weekend. Either way, it’d be nice if you had some funds stashed away to cover the expense.
You earn money from it. Most savings accounts earn a small amount of interest. However, no matter how little interest your savings account is earning, it’s still more money that you had before. When you have a savings account, the bank literally pays you. Why would you pass up free money?
Save with a goal in mind. Maybe you really want to buy a new car after college, or you just want the security and peace of mind of knowing that if something unforeseen happens, you won’t have to stress. Having somewhere that you can store your money until then will help prevent you from spending your savings on everyday splurges.
Develop some self-discipline. If you save a set amount of money each week, this will help you to develop your self-discipline. Self-discipline is important in many areas of life (staying healthy, studying, completing assignments on time, etc.). Having a savings account and making a routine deposit is just one way to develop this life skill.
Quit spending money. Okay, you will still spend money if you have a savings account, but having a savings account could stop you from spending too much money on the little things. Personally, I am not as willing to swipe my debit card as I am to part with a few dollar bills. Stashing my extra cash in a savings account prevents me from spending more money that I had intended. Take your spare bills and change and put them into savings.
You are an adult, and part of being an adult is preparing for the future. No one wants to live paycheck to paycheck, so start early, and sock away your cash. You work for a reason, so make your hard earned money work for you.
Do you have a savings account? How does it benefit you? Tell us about it by commenting below!
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