Many college students live in the now and avoid thinking about the future. So, it’s no surprise that not many of them are thinking about saving money. Or, more importantly, why they should save money in the first place.
Even if you have all the money you need and more to pay your monthly bills, it’s still essential to start saving early. Why? Because you never know what the future holds. You could lose your job or incur an unexpectedly large expense like a medical bill or car repair.
There are so many things out there you can’t prepare for, but when it comes to big bills, having savings can keep you from going into debt or stressing about coming up with the money you don’t have.
These are some of the top reasons that you should start saving money today.
If you want to buy a house
You might not be thinking about buying a house yet, but the day will come when you’ll want to invest in property. If you’ve already gotten a head start on that down payment, you’ll be light years ahead of many of your peers.
Plus, a larger down payment can make your offer look more competitive against other offers you might be competing against.
If you ever have an emergency
Whether you end up in the emergency room or your car breaks down, having a nest egg set aside to help you pay things off is a huge help.
You can avoid putting that money on credit cards and going into debt. Or having to take out a personal loan and creating another recurring payment for yourself.
Some things in life come out of nowhere. An emergency fund will save you from scrambling for money at the last minute.
If you want to retire
Oh, retirement. It’s so hard to think about that when you’re in college. But the sooner you get started saving for retirement, the more money you’ll have when that day comes. Whether you start up a 401k or an IRA, putting a little bit of money aside early can come with a big pay off.
According to The Balanced, “If you started investing at age 25, with 30 years of saving $100 each month at a 6.5% rate of return, you’d have $103,656.45 (including compounded interest) by the age of 55.”
Save for Graduate School
Planning to further your education after undergrad? Great! Start saving for that now.
After all, graduate students don’t get nearly as much financial aid, and every bit you have saved will keep you from going into more student debt later. Research how much your potential schools will cost and see how close you can get to paying for one or more semesters.
If you want to go traveling
Some people graduate from college and pack their bags for the next big adventure. But to do that, you have to have money set aside.
It’s always smart to put a little bit of money aside for potential big purchases — like vacations or cars. You might not know when you’ll finally book that trip, but knowing the money is there will ease your mind when the time comes.
As you can see, there are a million reasons to save money. The biggest one? You’re doing yourself a huge favor by setting cash aside for the future — no matter what it holds.
Get started saving today, and you’ll thank yourself tomorrow.