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.
- Chinatown Supermarket opens in South Salt Lake
- 9 startup companies perfect for your family
- Lawsuit accuses state of illegally pursuing...
- U.S. economy grows at scorching 4 percent in...
- BYU grad strikes gold teaching via online...
- The wrath of Comic-Con: S.L. convention...
- Dave Ramsey says: Don't touch that 529 plan
- Things are looking up in the economy, but not...
- Dave Ramsey says: Don't leave an estate... 13
- U.S. economy grows at scorching 4... 12
- San Diego Comic-Con tells Salt Lake... 12
- BYU grad strikes gold teaching via... 12
- Sarah Palin launches online... 10
- Dave Ramsey says: Don't touch that 529... 8
- The wrath of Comic-Con: S.L. convention... 8
- Utah Transit Authority eyeing electric... 4