Recent world events remind us that the world is an uncertain place. If you don’t have money in savings, your security can be at risk. A car breakdown or home repair can be an inconvenience with savings, but it won’t be a disaster.
You Can Make Smart Purchases
Putting money into emergency savings is always a good decision. In addition, you can create a staples fund. Are there foods and other consumables that are always on your list? When you see a sale, you can stock up.
For example, if your fall and winter meal plan includes soup and sandwiches, keep an eye on soup prices during the hot months. Then, look for coupons for your favorites. You can stock up on bread for a week or two if you have a freezer, but many canned foods can be stored for 18 months or longer.
You Can Be Bold
You can take smart, calculated risks to try something new with savings. For example, if your side hustle is excellent and your job is OK, you may be interested in turning that side hustle into a business or a full-time gig. With a savings cushion, you can give yourself the time to focus on ramping that up.
Do your homework. If you are interested in starting a business or going freelance, take a hard look at your current expenses and build your budget. It will take time to build that new income stream. With savings to cover your budget that ties directly into your current expenses, you can strike out on your own in confidence.
Enjoy Worry-Free Celebrations!
Cheap vacations can be a lot of fun. Heading out into the woods for a solo camping trip may be an excellent way to relax and beat the stress of daily living. However, you may have folks in your life who don’t enjoy hanging out by a campfire. With savings, your vacation splurges can be nothing but fun. Treat your loved ones to a fancy meal out or tickets to a show. Head to your dream city and check out that skyline. You’ve earned it!
Automatic Savings is Key
According to the experts at SoFi, “One of the simplest ways to save is to create a virtual piggy bank or auto saving vault.” A straightforward SoFI Invest (SoFi Bank) vault can allow you to round up each purchase and immediately put that cash right into your emergency savings.
Use automatic savings for your retirement as well. If you have a job and a side hustle, route your side hustle income right into savings and live on the job. Should your side hustle be incredibly lucrative, route that income into checking and save your regular paychecks? Finally, max that 401(k)!
Savings give you flexibility. Setting up separate savings accounts, such as house, car, and vacation, allows you to visualize your goals and make wise spending choices. Small amounts, saved over time, can give you a life of great freedom.