5 Benefits of Savings

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind. –Thomas T. Munger

Cultivating a habit to save from young is a virtue. The benefits derive from this wealth-building habit last a lifetime. The first rule is to pay yourself first. Put aside an amount and deposit into your savings account when you receive your paycheque. If you spend first and save what is left, most probably there will be nothing left to save. Here are the benefits when you save regularly:


1. The wonder of compound interest: Your initial deposit will attract interest. However, even without further deposit your original deposit plus the interest you have earned will attract even more interest. And it goes on. Imagine how much more interest you can earn when you save on a regular basis

2. Save to buy what you want: Instead of charging it to your credit card to buy what you want. You can hold on to it by saving up an amount to pay in cash and save on interest.

3. Save and invest: At first, you save and when you have saved enough you invest to increase your wealth.

4. An emergency fund: Save an amount to cover three to six months’ expenses and when you are unfortunate to lose your job you still can carry on your lifestyle until you get a new job.

5. Financial freedom and peace of mind: Life is less stressful when you know you have saved enough to meet unexpected events in life such as illnesses and accidents.


Let us reverse our way of spending money. Save and spend and not spend and pay even more later.