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Why Save Money?

February 29, 2012

Maybe you would like to build a secure future.

Maybe you’d like to sleep better at night.

There are LOTS of reasons to save.

Good money management happens one step at a time. You begin by paying your basic bills on time, building a good credit record, and buying essential insurance.  And of course you feed your family. Basic needs come first.

After basic needs, the very next step is to save money.  Save for:

  • Emergencies – flat tire, car repair, sick child, injured pet …
  • Holiday or special occasion gifts – when you plan ahead, you will have fewer credit card bills to pay after the fact. Save $25/month or paycheck to create your own holiday fund to pay for gifts.
  • Major household items, like furniture or appliances. These big ticket items create a real challenge to people without savings.  When a refrigerator dies, there is no advance warning — no “check engine light.”  Setting aside a few dollars each month can help build an appliance or furniture replacement fund.
  • Car – funds saved for car-related needs may be used in many ways: car repairs, tires or replacing a vehicle. All these needs involve substantial sums of money.  Saved money is less expensive to use than borrowed money.
  • Electronic equipment – if you want to have the newest gadgets (computer, I Pad, TV, IPod or …), you’ll need money.
  • College for you or your children – college is already expensive, and it will only increase in cost as years go by.  It’s easier to begin saving early (even small amounts) than to wait until your child is 18 and then try to find the money.
  • House – the American dream is home ownership, but it is generally possible only if you have money saved for the down payment and move-in costs (along with a good credit history).

The road to wealth begins with saving for short-term goals. Then, invest your savings for long-term goals such as college or retirement. If you make a habit of saving money, it will help you reach your goals.

Face it: you’re much more likely to gain wealth by saving regularly than by winning the lottery!

Susan Taylor

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

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