Saving is necessary to enjoy a healthy domestic economy . Think coldly: if you spend all the money you pay, you are just a payroll of indigence. To prevent this from happening, you should save at least 20% of your monthly income . Despite this, many people postpone the decision to start saving.
With phrases like “Today I can not, I’ll start next month”; “This month no, better when a new year starts” or “It’s still early, I’ll do it after 40” , they postpone indefinitely the decision to start saving . The consequence is that they never save .
In our opinion, the best time to start saving is when you are young and you generate your first income. The expenses of a twentysomething are much lower than those of a parent with a mortgage , so that this early age is perfect to start generating personal assets.
Why should you start saving when you are young?
These are some of the advantages enjoyed by people who start saving when they are young:
They benefit from the power of compound interest.
As we have already explained on numerous occasions, compound interest is your ally when you invest. Thanks to him you will be able to see your money grow while you reinvest the profits that you are getting . And there is a fundamental factor for this process to work: time. The sooner you start, the greater the benefits you get.
They do not need to borrow.
Young savers do not need to pay in installments the purchase of a new smartphone. Nor do they need to ask for a loan to buy a car . In addition, they can travel without using the credit card and have easier access to a mortgage. The savings gives them a plus of security that allows them to live without needing to borrow money.
They can undertake with greater guarantees.
A person who is in his thirties with some savings can afford to start a business with more guarantees than someone who does not have a single euro in the current account. Saving is the safety net that allows the entrepreneur to make decisions with a view to the long term, and not worried about the need to generate income from minute one.
They live more relaxed.
Someone who manages to save 300 euros a month periodically since he is 20 years old, even without having invested a single euro (which would have been an error), when he reaches forty he will have a very important security mattress . This will allow you to live without frights or fears.
An expensive repair at home, the renovation of the car or the children’s university will not be a problem for them.
They can achieve financial freedom.
A person achieves financial freedom when he does not need to work to cover his daily expenses . This can be achieved through passive income or through savings. In both cases, it will be much easier to get for a person who starts saving and investing when young.
These are just some of the many reasons why you should start saving now if you are young. Or at least to inculcate the habit of saving your children if you have already seen thirty past the rearview mirror. Do not leave for tomorrow and get the batteries today.