While it can be hard to not use money in your savings account when you are don’t earn much, there are many reasons why saving while you are young is a good idea, according to GoBankingRates.com.
Here are those reasons:
Time trumps amount
It’s much easier to save small amounts of money over a larger amount of time than to drop a large sum into your account all at once.
Interest works for you
In savings accounts where compound interest is offered, your account earns money almost constantly. This works more in the favor of those who store their savings for a long time.
Learn to set goals
Committing to saving money teaches one to have enough discipline to reach a goal.
Have a better retirement
Though it may be hard to imagine being a retiree when you are young, saving money earlier will bring in more money, making your retirement more enjoyable.
Prepare for emergencies
Medical problems, car repairs or other financial emergencies could pop up and having enough money to save for them can be a relief.
Young people actually have more money to save
When you are young, you often have fewer expenses, leaving you with more disposable income to save.
- Asian stocks mixed as markets await Brexit...
- Stocks, pound fall again due to UK vote...
- US economy grew at slightly faster 1.1...
- 'Avatar' mobile game landing ahead of film...
- US home prices climb in April; 7 cities set...
- Volkswagen settles emissions-cheating cases...
- How Amazon's Dash buttons can thwart smart...
- Nike co-founder Phil Knight retires from board
- Stocks, pound fall again due to UK vote... 8
- Community leaders share growth... 5
- Gap between Salt Lake renters, owners... 3
- Volkswagen settles emissions-cheating... 3
- Allegiant Air adding flights from Provo... 3
- Tesla wants to be the ultimate... 2
- Millennials are sparking the next... 2
- Dave Ramsey: Navigating the line... 2