Money is one of the essential resources in the world. You need money to afford rent or housing, to eat and to drink. Sometimes, you earn a little more than you need. During those times, it’s better to save than spend that extra cash.

Here are the top ten reasons why you should save money in 2020:

1. To stop relying on social security

Social security is assistance to people who need an extra hand with expenses for some time. Just because you have enough right now doesn’t mean you shouldn’t save up for the future.

a guy wearing mask holding a poster

2. To gain more of the compound interest

The compounding effect operates on the principle that whatever amount you leave in the bank will earn more interest in the long run. For example, you have $2,000 in a bank that has a 1.5% annual interest; in the first year, it’ll become $2,030; then, in the second year, it’ll become $2,060.45; and in the third year, you’ll have $2,091.36. Granted that you don’t touch your money for three years, you’ll earn $91.36 from interest alone. Imagine if you save the same amount per year.

coins and an alarm clock

3. To save for retirement

It’s almost everyone’s dream to retire early and not have to think about waking up early to go to work. By prioritizing your savings now, you can probably retire by the age of 40 or even earlier.

two women facing the sea

4. To have children

Raising children is expensive. Save up your extra money to make sure that you can give your kids the life they deserve.

a family in bed

5. To be ready for emergencies

Sometimes, accidents and calamities happen. You should always have an emergency fund so that you can adequately react to any dire situation. 

"emergency pull" in red button

6. To prepare for downpayment

When you’re planning a major purchase like a house or a car, you need to supply a sizeable downpayment so that lesser balance will incur lower interest rates.

a girl holding paper money

7. To set aside money for a business or investment

Passive income is better than working a 9 to 5. Save up so you can have a business in the future. The company will earn you passive income so that you don’t have to work another full-time job.

a girl holding cash

8. To get out of debt

Debts are liabilities that slowly eat away at your salary. Loans have interests that will increase the longer you don’t pay the entire amount. Save up money so you can pay off all your debts one at a time.

cash on top of a red notebook

9. To have a good life

Luxury doesn’t come easy to those who weren’t born from riches. If you’re from the middle class, save money so you can eventually afford things you’ve always wanted to buy. With enough savings, you can buy land and a house that could be a long-term gain.

a girl facing the sun with her arms wide open

10. To reduce wasteful spending

Sometimes, you might have so much extra cash that you feel like splurging it on a gadget or expensive product. If you’re saving your money instead of spending it, you can be smarter on your purchases.

sad girl holding her wallet  up

Did our list inspire you to save this 2020?

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