Financial Facts That Show How Important Saving Really Is
Chances are you’ve long heard about the benefits of saving, and probably everything you’ve been told is pretty true. Saving is one of the fundamentals of successful money management at any age — and financial facts back it up.
Still not convinced? Consider the following financial facts that make the importance of saving crystal clear.
Financial Facts That Explain The Importance Of Saving
It’s Vital For Emergencies
Emergencies can happen to anyone at any time, no matter your current financial state. But one of the most troubling financial facts is that most Americans aren’t anywhere near equipped to address a financial emergency through their savings.
According to the Financial Security Index survey, just 39% of people in the U.S. say they have the savings to cover a $1,000 expense they did not anticipate.
Savings Can Help You Make Money
One of the most important financial facts you can take advantage of is knowing that a savings plan can help your money grow. Once you have a good amount of money that covers six months of expenses in an emergency fund, you can establish savings in a tax-advantaged retirement account.
These funds, including Roth IRAs, let you invest in stocks — and you won’t have to pay taxes on such investments.
Savings Should Be Integrated Into Any Budget
You’ve probably heard that there’s no one perfect amount to save each month, but there are methods that people swear by and make a huge difference in establishing financial freedom.
Try following the 50/15/5 rule:
- 50% of your income should go to expenses.
- 15% should go to retirement savings.
- 5% should go toward other savings, such as a regular savings account or an emergency fund.
Though it’s just 5%, the savings part is perhaps the most important since it’s generally recommended to have at least three months of expenses in a savings account at any given time to cover emergencies.
Your Physical Health Is Impacted By Your Financial Health
You don’t just seem to feel better when you’re financially successful and responsible. Multiple studies have found scientific correlations between good mental and physical health with positive money management.
Good health has long been tied to higher income and peace of mind from maintaining savings. Since the 1970s, those who are financially successful and backed by healthy savings accounts have had higher life expectancies than those who struggle financially. This should be no surprise since savings regularly help pay for unexpected medical expenses.
You Will Absolutely Need Savings For a Happy Retirement
If you don’t want to save for your financial present, save for your financial future. Retirement is one of the biggest reasons why saving is so significant. Whether through a 401(k) offered through an employer or another type of retirement fund, these accounts are great ways for savings to appreciate since they tend to earn interest fast.
Consider this: If you start your retirement fund and then deposit $100 monthly for a solid decade with 6.5% yearly compounded interest, you’d have about $16,200. If you keep going for ten more years, you’ll have nearly $47,000. At the same pace and rate of return of about 30 years, you’ll have about $104,000 saved by the time you reach retirement age.
That’s one of the most important financial facts you can’t ignore. Slow and steady savings deposits always win the race toward a happy financial future.
Installment Loans Can Be Used To Overcome Financial Emergencies
Any amount of savings can help you overcome unexpected expenses easily. It’s a great place to turn to when you have urgent home and car repairs, have to pay for last-minute travel or need to cover a hefty emergency room bill.
Installment loans are short-term loans that offer small amounts of cash that are paid back in regular installments over time. And they’re easy to qualify for. At Utah Title Loans, Inc., it can take as little as 30 minutes to qualify for an installment loan of up to $1,500.
Here’s all you need to do. Head to our homepage and fill out the installment loans inquiry form. One of our loan representatives will give you a quick phone call to discuss the required items and help you through the rest of the short process.
Need money quickly? Once you are approved for an installment loan at Utah Title Loans, Inc., you will get the cash you need that same day or the very next business day.
Get Started Today
One of the most important financial facts to remember throughout life is always maintain a healthy savings account. Another is to consider installment loans when a financial emergency strikes. To get started, head online, give us a call, or visit a Utah Title Loans, Inc. location near you today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.