10 Ways Saving Money Can Better Your Life
Saving money makes your life better. We know putting cash away can be difficult, especially if you have built up some bad habits over the years. A lot of people tend to spend outside of their means, and they get used to that lifestyle. Saving money has more benefits than you have probably thought of.
Here are ten of the best ways that saving money makes your life better:
1. Saving money is good for reducing anxiety levels
People who live paycheck to paycheck, barely scraping by and saving nothing, usually experience tremendous amounts of stress and anxiety. If you’ve ever gone from situations of financial well-being to the opposite or vice versa, you know how different your overall mood is. When you don’t have any money, you constantly worry about it and it interferes with your ability to get through each day happily. The stats are there. According to an American survey, the number one thing Americans stress about most is money. Another survey suggests that 57% of divorces are the result of money stresses.
Stress can impact every aspect of our lives. Think of the last argument you had with your spouse - was it about money? Most likely. Think about the last time you were in a bad mood and maybe snapped at people you cared about? What was causing that mood? Was it money? Probably. Our relationships with our significant others, our children, siblings, parents and other loved ones all become strained under the stress of money and our overall quality of life begins to dissolve.
Poor credit and loads of debt all contribute to financial stress. This is why it's so healthy to start being proactive about your finances.
Once you do make that decision, though, to improve your money and credit, you’ve taken the first step towards happiness and reduced stress.
According to studies, financial stress is linked to depression, anxiety and heart attacks. There is often a correlation between money trouble and suicidal thoughts and tendencies. Your mental and physical health is tied to stress which means it’s connected to money, whether we like it or not.
When people get the flu, they care for themselves. They get rest and fluids and keep themselves warm. It’s the same thing when it comes to money stress. You have to take care of yourself when you’re experiencing money stress.
Here’s a list of 7 ways to conquer your financial stress:
- Face The Problem
Sit down and spend time understanding where things went wrong and how you can improve them. When people are stressed, they tend to play the avoidance game. Usually, when people finally face their fears, they find the situation is not as bad as it seems.
- Make positive changes
This could be as simple as setting a budget or cutting down on your daily spending. You could also set up a new savings plan or even set a goal to pay down your debts. Finances don't get better on its own. If you’re not making changes, it’s going to stay the same. Creating new and better habits for yourself and your money is going to reduce the amount of stress you experience relating to it.
- Make A Budget
I know, no one likes the B-word, but it’s necessary for mental and physical wellbeing. The simple act of making a budget is going to relieve some stress and make you feel a lot better about the situation. You might find that as you progress with your plan, you'll feel a little relief start to creep in.
- Plan For The Future
Saving money now, even just a little bit, can ensure you avoid money stress in the future.
- Set Goals
If the source of your money stress is worrying about retirement, set some good, solid goals to save. If your stress is a result of poor credit and huge debt, set goals to pay down your debts and improve your credit. Having clear goals laid out ahead of you is the first step to reducing your stress. It will light up the path ahead of you that you couldn’t see before.
- Seek Help
There is no shame in asking for help when it comes to complicated money problems. There are people out there who have been through years of post-secondary education to understand the intricate details of how money works. Having their input on your situation is a great advantage. They’ll see things that you could be missing and they can guide you in the direction you need to go. You’re also going to feel accountable to anyone who is actively helping you, giving you extra motivation to do better.
- Reward yourself
When you reach the goals you’ve set for yourself or you’ve successfully made some changes to your money habits, don’t be afraid to reward yourself. Changing habits is no small thing and should be rewarded. Make sure to pick rewards that will motivate you.
We all know that money stress is often brought on by bad habits and poor money management. That means, in order to reduce your financial stress, you need to make changes within yourself. It can be scary to take that first step, but once you do, it won’t be long before the money stress starts to melt away. You’ll sleep better, you’ll focus better, and you and your significant other with have more energy to enjoy each other’s company.
2. Saving money is good for your relationships
Nine times out of ten, marital arguments are centered around money and the stress that comes along with not having enough of it. Partners feel the weight of being in debt and not having enough money come down on them, and it can cause an immense amount of tension, anger, distrust and eventually lead to the relationship dissolving. Nurture your relationships with those you love by nurturing your finances. Get a nest egg growing so you can approach conflict without the adding the stress of being broke to it.
3. Saving money is good for your quality of life
Self-disciplined savers are happy because they have less stress, less worry and they have lots to look forward to.
4. Saving money is good for your credit score.
While saving money may not directly affect your credit score, the fact that you have something to fall back on should you hit hard times means your credit score won’t suffer.
5. Saving money is good for opening up opportunities
If you have a decent sized amount of savings and you see an investment opportunity, you have the freedom to take it up. Having money behind you gives you choices: home ownership, career changes, etc.
6. Saving money is good for times of crisis
We prefer to think nothing terrible is going to happen, but sometimes it does. We lose jobs, have house fires, or car accidents. Our pets get sick or our wallet gets stolen in a foreign country. Life is unpredictable, so having a good chunk of money to lean on, just in case, is going to ensure that the bumps along the way aren’t game-changing.
7. Saving money is good for your confidence
Saving money is part of what we call “adulting”. The more adulting you do, the more proud of yourself you feel. You are owning life like a boss and you’re going to hold your head a little higher because of it.
8. Saving money is good for your health
Eating cheaper often means eating healthier. You’re going to have way more veggies in your diet because they’re so cheap.
9. Saving money is good for your goals
Saving money helps you reach your goals, whether they are to start a new business or purchase a home, or finally see Chichen Itza in Mexico. Money can help you get there.
10. Saving money is good for your money
When it’s saved, your money is making even more money for you. Even if you just have your money in a regular savings account, your money is still earning interest. If you save it, it will grow!
As you can see, there are many pros to saving money, and there’s really only one downside and that is living on a tighter budget. Can you cut things out of your spending for all of these benefits? It seems like a pretty good trade-off to us!