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Most of us know that we should save, but we don’t always know why. “For a rainy day” is so vague that it’s easy to ignore.
But it’s not just about rainy days! Sure, saving money lets us deal with life’s unexpected challenges. But saving also lets us live comfortably, retire securely, and maybe even follow our wildest dreams.
Saving also brings us more money. For example, the earlier you save for retirement, the more compound interest you’ll earn. And if you're buying a home? A larger down payment means a smaller mortgage, plus maybe a lower interest rate and no need to buy private mortgage insurance—a real win-win-win! (Bonus: At tax time you might qualify for the Savers Credit.)
Read on for more on reasons to save, along with suggestions for where to put your money.
Sources: Consumer.gov (FTC). Making a Budget. 202... + 6
- Consumer.gov (FTC). Making a Budget. 2022. Accessed May 12, 2022.
- IRS.gov. Retirement Savings Contributions Credit (Saver’s Credit). January 3, 2022. Accessed May 12, 2022.
- AmericaSaves.org. What to Save For. 2022. Accessed May 12, 2022.
- McKernan SM, Ratcliffe C, et al. Thriving Residents, Thriving Cities: Family Financial Security Matters for Cities. Urban Institute. April 21, 2016.
- Paula Pant. How much should I save each month? TIAA.org. 2022. Accessed May 12, 2022.
- Education Data Initiative. Average Student Loan Debt. July 10, 2012. Accessed May 12, 2022.
- Northwestern Mutual. Planning & Progress Study 2018. Accessed May 12, 2022.
