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Reasons to start saving today

25th January 2021 Print

The oldest bartering system on record involved the exchange of livestock for goods and services. However, swapping animals for the things we wanted to own was a little cumbersome (imagine shopping around for new shoes with four camels and two donkeys trailing you on a leash). That’s why in 600BC, some clever person invented coinage. It was smaller, easy to transport, and durable. Convincing people that money was preferable to possessions must have been a hard sell - those first few coins would have had little more appeal than magic beans. But it caught on, and here we are. 

Spending money is more fun than saving it. But you have to save it to get a large sum to buy bigger, better things. It’s a wicked coming together of patience vs reward. For those who can stave off the attraction of retail therapy, saving must seem easy. For the rest of us, perhaps some inspiration is needed (you may wish to find out more information regarding a stocks and shares ISA, for example, as a way to save money long-term). 

Saving for an Unexpected Necessary Expense

You could already be familiar with the term ‘planned obsolescence’ or you might have just looked back at the phrase three times and still have no clue what it means. In essence, things are built to break. Things like vacuum cleaners, washing machines, cars, and phones. It’s all meant to become garbage within a few short years. Why? Because haven’t you heard of the newer model that everyone you know has already bought? Send more money today and you too can be part of the in-crowd. That’s why. It’s not a nice thought, but the constant cycle of spending our money to replace broken down items keeps our economy (and the jobs market) going. It’s necessary to our way of life. 

But when expensive things break, like a refrigerator or a shower or a laptop, the necessary replacement of the item can be hard to take. You’re going to feel it where it hurts, in your bank balance. Savings are the answer. Yes, it’s an expense you’d rather do without, but if your savings can absorb the loss, your disposable income won’t be affected. 

Travel (enjoy yourself)

The German’s have a word for the guilty pleasure we feel at other people’s misfortune. It’s called schadenfreude. 

Instead of secretly hoping that your neighbour’s cruise is cancelled due to bad weather, why not be the person going on the cruise instead?

Travel is expensive. That’s why starting to save now can help you to ditch the small amount of relief that schadenfreude can bring and be the neighbour that takes the round the world tour. 

“Bank of Mum & Dad”

Children don’t stop costing a fortune at the stroke of midnight on their 18th birthday. They will continue to turn to you for financial help, only now it will be for more expensive reasons. Everything from college and weddings to entrepreneurial ideas and moving out needs to be funded. Saving now can help you (and your savings account) to be the launching pad your child needs to venture out into the world.