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10 Smart Reasons to Start Saving More of Your Income

The U.S. Department of Commerce tracks monthly savings rates, and after taking a peek at the results, I’m shocked!

It turns out that Americans haven’t saved more than 10 percent since 1985! Not only is that disappointing, but it’s also scary. After all, how can we get ahead if we don’t save money? I’m taking the other extreme and saving half of my income. I think saving money is really important (and much more than just buying cheaper things). My fiancee and I are saving half of our combined income starting this year. Our goal, ultimately, is to buy a forever home without significantly altering our current mortgage, and the only way to do that is to put a significant amount of money toward a down payment.

You don’t even need to be as stringent as I am in order to save more than you’re saving now. If you need motivation, here are 10 reasons to save more money.

  • 10 Reasons to Save More Money 1 of 11
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    How much of your income are you putting away? If you're part of the majority of the U.S., it may not be enough! Here are 10 reasons to put more of those pennies in your piggy bank.

  • 1. To Hedge Against the Unforseen 2 of 11
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    You never know what might be coming down the pike. But you can be more prepared for the great unknown with some money in your savings account. You'd be surprised about what a cushion in your account does for your sanity.

     

    Image by Kathleen O'Malley

  • 2. To Have Peace of Mind 3 of 11
    10 Reasons to Save More Money

    You know that tightness in your chest when it's the 25th, and you don't get paid until the 1st, and you don't have any money left? I do. I know what it's like to run out of money before running out of month, and one of the best ways to hedge against that is to save more money.

     

    Image by Kathleen O'Malley

  • 3. To Provide for Your Family 4 of 11
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    Do you want to help your children go to college? You've got to save more money! If you want to be in a financial place to help your children when they grow, you need to get into the habit of saving more money.

     

    Image by Alvimann

  • 4. To Provide for Your Future 5 of 11
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    Eating ramen noodles is NOT something I want to do when I'm elderly. Nor do I want to have to work until I'm 102 in order to pay for those ramen noodles. Say what you want about the government and whether Social Security will be around by the time my generation is ready to retire, but I'm saving my own money just in case that doesn't work out!

     

    Image by verbaska

  • 5. To Be Able to be Generous 6 of 11
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    Some of the most generous people I know aren't wealthy. They're simply kind and generous, and they're able to be generous because they've saved. I try to pay it forward. In fact, I keep $5 McDonald's gift cards in my purse to hand out to the people holding street signs. I can afford this simply because I'm a saver.

     

    Image by Robb

  • 6. To Invest in Companies You Believe In 7 of 11
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    There are so many companies out there doing great work, and you can invest in them directly on places like Kickstarter or indirectly once they become publicly traded. You have this ability to put your money where your mouth is when your money isn't going toward debt repayment.

     

    Image by cohdra

  • 7. To Be Able to Invest in Yourself 8 of 11
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    Always wanted to take that sewing class? How about going back to get your MBA? Continuing education, professional licenses, even conference attendance. All this can be yours — if you have the savings!

     

    Image by taliesin

  • 8. To See the World 9 of 11
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    Save up for a trip — then take a trip! Go see the world. Home will be here when you get back.

     

    Image by Kathleen O'Malley

  • 9. To Show Restraint 10 of 11
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    When you save your money instead of spending it, you're showing your values and exercising restraint. Just because you have the money for something doesn't mean you buy everything you want. It's a good habit to get into because the less you want, the less you spend, and the more you save.

     

    Image by gvti

  • 10. To Follow Your Dreams 11 of 11
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    What do you want to do most in the world? Save up for it, and make that dream a reality. Do you want to stay at home while your spouse works? Fantastic. How about start up that ice cream shop you've always talked about? Maybe you want to become a professional photographer? These dreams cost money, but if you save for them, you can fund your dream. And that's one of the best uses of money out there.

     

    Image by Kathleen O'Malley

Article Posted 2 years Ago
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