With you first paychecks you will be tempted to spend a lot of money (if not all) in order to celebrate.
In this article, I am going to show you why it’s not a good idea and most importantly why it’s important to save money as early as possible.
Saving money to create an emergency fund
The first reason to save money is to be able to create an emergency fund.
Indeed, we never know what life can brings us.
Indeed, one day you may be confronted to some unexpected expenses such as:
- Your car just broke down and you need to pay for some repairs,
- The washing machine no longer works, and you need to buy a new one,
- You need to have an unexpected dental surgery,
Thus, by putting money on your savings account each month you will be able to create an emergency fund to help you in case of unexpected events and emergencies.
If you want to learn more about this specific topic, I wrote an article explaining how much money you should save in case of emergencies.
Ideally, I recommend having at least between 4 and 6 months of savings ahead of you so you can be financially secure.
Saving money to invest and build wealth
The second reason to save money is to be able to leverage it thanks to investing.
After securing your emergency fund, you should start to invest most of your money in order to make it work for you while you sleep. Indeed, the ultimate goal is to build wealth and not just numbers on your bank account.
We already wrote many articles about ways to invest your money and build wealth.
If you want to discover more about the topic, I recommend reading the following articles:
In the end, saving money to be financially free
After you’ve built your emergency fund and started acquiring assets in order to build wealth, the third reason to save money is to reach a state where you are financially free and follow your passions.
This freedom is possible only if you start to save money and build wealth as early as possible.
After reading this article you should have a clear idea why it’s important to save money as soon as possible.
Now that it’s clearer, read our dedicated guides to help you save money during the different steps and goals of your life: