5 Reasons why young salaried individuals must save

You always wonder why you always run out of money by the end of the month. You may even earn a huge amount of money, but still, live paycheck to paycheck. You may even be blind to the fact that, you’re expenses are more than your income.

Well, you’re in luck; here are 5 reasons why you have to start saving at an early age when you are young and energetic so that you can save a considerable amount of corpus for any sudden need and for your golden years.

1. Saving money is your duty

If you have no savings, investments, or pension and you haven’t started saving for your future, then who will? To meet your financial goals faster now is the time to consider an aggressive saving strategy. You must have more reasons to spend money than saving it but move your approach into saving more than you spend and then gradually save even more as your budget allows.

2. Handle personal lifestyle inflation

If you make more money you will also love to spend it more. Saving keeps your expenses in check and sets an upper limit on your expenditure in order to maintain your goals on track. Living on with you’ve left after saving gives you the discipline to accept the fact that the money left is for groceries only and not for some careless, expensive shopping spree just because the money is present. It helps keep your lifestyle in check.

3. The foreseeable emergency

This is self-explanatory. We all need to save money for a rainy day because we never know when they’ll show up demanding more resources than we’re prepared to give. Savings allow you to save in such a way that you’ll always have sufficient money to cover minor and major emergencies.

4. Achieve financial goals faster

You may have been chasing a long-term goal such as buying a house, paying tuition or sending your kids to college. Your goal of having a blissful retirement can also be fulfilled by choosing a proper retirement plan which will take some portion of your monthly salary. Whatever it is, money is vital and in order to attain these goals in the required time, you’ll need a sufficient savings plan.

5. Enjoy more of your money now

All the points above underscore the need to save for the rainy day, but then, at the same time, it’s your money, and you must learn to find the balance between spending on yourself and spending pointlessly. Do something you get pleasure from because you’ve worked now is the time to enjoy it.

Saving is a decision that should be entered into with great care and planning so that you can bolster your savings and meet your financial goals faster. This may entail making crucial sacrifices such as moving to a smaller home or selling your car, however the results are life changing as you’ll reach your financial goals faster.

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.