There are many more benefits than the 10 benefits of saving money below. However, the biggest benefit of saving is that saving money build wealth. Not a single person built wealth by spending more money than what they brought in. That’s not how the game works.
When I was first starting out in my wealth building journey, I was willing to sacrifice anything and everything that I possibly can to move to the top 1%. I’m nowhere near the top 1% but I know I’m going to get there at some point in my life.
In the road to riches, saving money is the cornerstone of building and having wealth. The more money you have, the more money you generate. Millionaires can easily live with a 10% return rate while someone with $100k needs a 100% return rate to afford to live.
The more money you have, the more security you have. Saving money is the number one characteristic that’s necessary to get there. Every paycheck I got, I saved 50% of it and never looked back. I don’t miss that money and I am glad I put myself in that position in my younger days.
The 10 benefits of saving money just can’t be ignored. America is literally the best country on Earth to build wealth. It’s not a wise idea to throw that birth lottery winnings away. The more savings I have, the less dependence I feel on my employer and anyone else.
I intent to keep it that way.
10 Benefits of Saving Money
The 10 benefits of saving money is as below. They are too valuable to be ignored.
1) Saving Money Builds Wealth
No one ever built wealth without having savings. Even the millionaires who inherited their money inherited it because their parents saved money, at the very least. The 10 benefits of saving money includes the ability to build wealth.
I have a net worth of $400,000 at the age of 28. That’s just not something that everyone can say. It’s almost in the top 1% of my age group. I know that I can grow it to even more later down the road. The first thing that I did was I saved money.
There was no dining out, traveling, or anything else that you can think of for a solid 3 – 4 years. If I could save money and protect my financial future and security, I did it. There was no exceptions. I knew sacrifices were essential to saving money and there was no way I wasn’t going to sacrifice.
I want to get to the top too much and the sacrifices I’m making are all worth it.
2) Saving Money Gives You Peace of Mind
Especially in a bear market. 56% of Americans can’t come up with a $1k expense. We’re literally talking about the richest and wealthiest country in the entire world. And they are living by the thread that they can’t even come up with a $1,000 expense. They are at the complete mercy of their employer.
Saving money gives you the peace of mind that is absolutely priceless. The bear market of 2022 scared everyone straight and made them realize that they need to save money to live life and feed their families. Security is included in the 10 benefits of saving money.
If I lost my job tomorrow, I would be devastated. However, that doesn’t mean that I can’t put food on the table and a roof over my head. That will always be possible because I socked away so much money in my younger days. I am so grateful my younger self put in the dues.
Peace of mind is absolutely amazing. Imagine never being afraid of a layoff round ever again for the rest of your life.
3) Saving Money Lets You Invest More
Saving is one part of the equation. The second step is investing the savings so that it grows to bigger amounts down the road. The person who invests 50%+ of their income every single year will come out MOUNTAIN times ahead than the one who doesn’t.
It’s one of the biggest reasons why the wealth equality is so extreme. The poor spend all of their money on things. The rich spend all of their money on investments that’ll make them richer down the road. The 10 benefits of saving money includes the ability to invest more.
The game of money is just a game in which money is used to keep score. To win at the game of money, you need to invest it so that it grows into larger amounts down the road. My investments provide me with an additional boost to my income that I appreciate every month.
It makes my paycheck look even bigger than it ever could be.
4) Saving Money Lets You Buy a Car
Cars are expensive, especially in 2022 with the chip shortage driving the price of cars through the roof. Cars are big picture items. The key is to buy a $10,000 car on a $50,000 salary, for example. When I first graduated college, my income was $52,500.
So I bought a $10.3k car that safely transported me from point A to point B, nothing more and nothing less. I didn’t buy a $25,000 car to one-up my friends. Some of my friends were getting a Tesla when they just barely graduated college. That’s just not the right way to go.
The 10 benefits of saving money includes having the ability to buy a car. Cars are a NECESSITY in America. Trying to live without a car in America is quite difficult and not recommended. I lived without a car in college and I was miserable every single year. I just didn’t know it.
Having the ability to transport yourself to anywhere and anytime is a key advantage.
5) Saving Money Lets You Buy a House
Whether we like it or not, we need to come up with the money to put up a down payment on a house. Yes, you can make do with a 3.5% down payment. However, that holds a level of risk that isn’t recommended for a lot of people.
The 10 benefits of saving money includes the ability to buy a house because the down payment is necessary to purchase a house. I am looking to buy a house in the next 2 – 3 years. I can’t wait to buy houses at a discount in the coming years.
This is when I’m actually excited to be stockpiling cash before the real big discounts happen. Although renting has been great, I know that homeownership and the peace of mind of owning property will be a net positive to my mental health.
I just know my cash savings are going to balloon up in the next couple of years, as well. I will be ready to take advantage of depressed property prices.
6) Saving Money Lets You Take on More Risk
I’ve yelled at my bosses, walked away from interviews, and walked away from job offers because I didn’t think they were right for me. How did I do that? I knew if I didn’t get those things, it wouldn’t have mattered anyway. If you have money in the bank, who cares if no one hires you?
Your savings float you for the next couple of decades, anyway. The 10 benefits of saving money includes the ability to take on more risk. You can’t get ahead without taking risk. Many people took on risk to get to the top.
The 10 benefits to saving money includes having the ability to take on more risk to get to the top. Jeff Bezos famously said he’s made “billions of dollars” worth of failures. Do you know of anyone who even has billions of dollars to fail with? I sure don’t.
Taking on calculated risk is a wonderful venture worth pursuing. Especially when it all works out because of your analysis and thinking.
7) Saving Money Prepares You for Crises
Whether people want to admit it or not, 2022 was actually a financial crisis that people didn’t really take seriously. It was a weird crisis because the labor market was so strong but that doesn’t take anything away from how bad everything was.
Crisis do happen and they happen when you least expect it and quicker than you would expect. Crisis means that you could potentially lose your job. You could potentially get into a car accident or it could possibly mean an unforeseen health problem that you didn’t think you would ever have.
The 10 benefits of saving money means being prepared for those instances. The good times have NEVER lasted forever and the good times will never last forever in the future as well. Saving money prepares you for when they eventually happen.
I’ve been in car accidents, had a tire blow out in the middle of the highway, went through health problems, and many more in 2022. The bad times happen as well.
8) Saving Money Lets You Start Side Hustles
My blog costs money and time and loses me money month after month, year after year. However, I can afford to run at a loss because I have a well padded up savings account. This goes in line with having the ability to take more risks later down the road.
Saving money lets you start side hustles to operate at a loss for years on end because it gives you that ability to do so. The 10 benefits of saving money includes having the ability to start side hustles. While my side hustles lose me money, it’s an investment into the future.
If all else fails, I know that I’m having so much fun writing and providing valuable content to my readers that it’s worth it. I’m learning a ton about social media influencing, SEO, and writing captivating words for an audience. It’s something that I wouldn’t have learned through my day job, alone.
Side hustles are amazing ventures that are worth pursuing. It diversifies your skillset into more than your day job.
9) Saving Money Prepares You for Medical Emergencies
I didn’t even know I had digestion problems until 2022. Medical emergencies, whether we like it or not, happen when we don’t want it to. Even the person who works out every single day and eats the healthiest food you can ever imagine has health problems.
Saving money gives you the money to pay for any procedures and operations that you might need. The 10 benefits of saving money is that it allows you to care for your health better. It’s no coincidence that the rich enjoy a higher standard of living and lead longer lives.
They have the ability to actually go to the Doctors without caring if it’ll break the bank or not. They can afford any procedures that may be necessary to get better. Medical emergencies, whether like it or not, can happen at any time.
And we can’t blame our bodies for having them because it’s through no fault of our own. Saving money just gives you the ability to pay out of pocket for any medical emergencies.
10) Saving Money Helps Pay Down Debt
We pay our debt off with savings, nothing else. There are people who are wondering, “what is good debt?”. While good debt where the benefit of debt far outweighs the cost of debt exists, it’s still better to be without debt. I took on $16k unsecured debt at 3% in late 2021.
After one year of holding the debt on my balance sheet, let me tell you. Not having debt is better than holding any amount of cheap debt. 10 benefits of saving money includes the ability to pay down debt. Debt is not something you want to hold on the balance sheet.
Owing something to someone else feels bad.
The psychological damage of having debt on the balance sheet, for me, far outweighs any potential gains I can get from the debt. I’m glad I learned this lesson early while I have a relatively small debt balance. Rather than later in my life with potentially millions to lose.
Debt can be your friend but you really really have to know what you’re doing. That’s the most important part.
10 Benefits of Saving Money is Real
There are many people who don’t understand the 10 benefits of saving money and spend money to their heart’s desire every single paycheck. That’s just not the right way to go. It’s not going to matter today, tomorrow, or even 1 year from now.
However, when the time comes to pay the piper 10, 20 years from now is when the difference is clearly visible. The savers come out ahead than the spenders. It’s just a mathematical fact that it will eventually work out as such.
Even with high inflation and even with high erosion of our spending power every year. It’s better to have more money than it is to have less money. I feel so much better in the 2022 recession knowing that I am financially protected in the event of a worst case scenario.
I can’t imagine being a recent college graduate during these times. It’s just one of the worst times to graduate because asset prices are at some of the highest and overvalued spot in history. Therefore, I hope the ones who graduated into this market is recognizing the 10 benefits of saving money.
I know that as time passes, savers will always come out ahead and on top more than the spenders. I can’t wait to save even more of my money as time passes by, I make more money, and as I generate additional money from side hustles. It’s an exciting time that I’m prepared for.
Emergencies don’t happen until they do.
10 Benefits of Saving Money Shortlist
- Saving money builds wealth
- Saving money gives you peace of mind
- Saving money lets you invest more
- Saving money lets you buy a car
- Saving money lets you buy a house
- Saving money lets you take on more risk
- Saving money prepares you for crises
- Saving money lets you start side hustles
- Saving money prepares you for medical emergencies
- Saving money helps pay down debt
