1. Why Saving Money Is Important
Why is it so important to save money? Money can be the key to many opportunities in life, but mostly a necessary evil to provide for yourself or for a family. Second, you can save money to pay off large debts, avoid unnecessary stress, lower your stress levels, have more financial freedom and leave a lasting legacy. Third, you can save money to pay for your children’s education and your retirement.
However one of the most overlooked reasons for saving money is for emergency purposes. If you do not have enough of a cushion in the bank for a family emergency, firing from a job, medical purpose or any other disaster. If you ever come across one of these emergencies and are short on any savings, financially speaking this could put you behind for years. Even if you are not concerned about saving money for yourself, you may want to consider your loved ones before making some sacrifices to save some extra cash.
Whatever your reasons are for saving money, money can help you pay for large future purchases, avoid future financial debt, lower your financial stress, increase financial independence and feel more financially independent. Money doesn’t solve all of your problems, but it can help relieve most of your financial stress. Life can come at you hard and fast and if you are not financially prepared the stress of living month to month can be difficult, especially if you do not have any savings.
2. Creative Ways To Save Money
Of course if you make way more than you spend, then saving money may not be as difficult, but if that is not the case for you, here are some creative ways to consider saving some more bread.
Decluttering is one of my favorite ways to save money. Decluttering can help you improve your financial stream, especially if it is time to travel. Take a look through your closet and home to find items that you don’t need or use. You can either store the items or use the money to go on vacation. Many people have turned to garage and yard sales to declutter and make some extra cash. The more you declutter and get rid of unnecessary items, the more you realize the less you need. Remember the less you spend the more you have.
This may seem like common sense to most, but in the land of the free most people tend to spend a little more freely on certain items than they should. If you go out for dinner every night, and you then put the entire bill on your credit card, it might be time to address the problem of bill payment. You will end up paying unnecessarily expensive interest rates if you use your credit card to purchase everything, or go into debt when it is not needed. This may not be as fun as the others, but avoid going into debt on unnecessary items.
A third way to save money is to price shop. Learning to shop smart is a great way to be mindful of your purchases.
One example of price comparison shopping is by paying attention to the sales and prices when you go to the grocery store, instead of just grabbing anything off the shelf, pay attention to sales or grab unbranded items that cost less. You can utilize this same strategy in many areas of your life by comparing ComEd providers and rates to find the utility provider with the most affordable rates, or by comparing internet providers that offer the best plan package.
Another way to save money is to be mindful of your energy usage; you might be surprised how much money you can save on your electricity bills by simply practicing energy efficiency in your home. Some energy efficiency tips that can help save on your utility bills are:
Switching to energy efficient light bulbs
Only washing full loads of dishes and laundry
Keeping your AC filters cleaned
Utilizing ceiling fans, so it can work with the AC instead of having the HVAC system do all of the work to heat or cool down your home
Turning off all lights and appliances when not in use
Another option is to live a bit more of a minimalist lifestyle. Even if you can afford much, living this type of life can help you save more and be in a better position to help others. Things like clothes, shoes and dishes or any other items that are unneeded in large quantities, try cutting back on these items and set more cash aside. You may be surprised how much you can save overtime.
In the end, take a look at your finances and see where you can make cutbacks. Also walk around your home and see what items you may be able to cut back on, sometimes the answer is right in front of you. Get creative in your journey to save, for most it’s just a matter of a little self-discipline and holding yourself accountable to your goals.