3 reasons to save more money

Most Americans think they won’t be ready for retirement, according to a Bankrate survey: 58% say they’re behind on retirement savings, and 37% say they’re significantly behind.

The importance of saving is rarely doubted. Saving is one of the most basic (and most repeated) bits of financial advice. But when it comes to doing the right thing with your money, just knowing you should save isn’t enough.

And that makes sense. It’s tough to do something consistently without understanding why you should put in the effort to save money in the first place. After all, saving money takes self-control and a certain amount of sacrifice.

If you need help understanding the importance of saving money, think about these key reasons to save more money now:

It can be tough to put some of your cash into a savings account if you don’t have a set goal for that money. Why save for later when you can spend on what you want today, right? But one of the many reasons to save more money is that even if you don’t know exactly what you’re saving for right now, you’ll likely find something you want to save for in the future. A new car, a new home, a child’s education…the possibilities are endless.

Plus, it’s important to have some cash set aside for emergencies and unexpected expenses as they come up. Give your rainy day fund some serious growth opportunities with a 360 Performance Savings account that offers a great rate.

“It has nothing to do with the money and everything to do with giving yourself flexibility and choice in your life,” says Eric Roberge, CFP® and founder of a financial planning firm that specializes in giving financial advice to people in their 30s.

“When you have money available in the bank you can do what you want without stress,” he says. If you’re wondering why you should save money, imagine giving yourself freedom to choose what you want to do rather than feeling stuck in a particular situation or position because you rely on the paycheck.

How much you should save depends on your financial goals. You may have a specific goal you want to achieve, like taking a year off work to travel. In that case, add up how much you’ll need to cover the cost of travel. You’ll also want enough to pay your regular living expenses if you don’t plan to have a paycheck during that time.

If one of your reasons to save more money is to have more financial freedom, you can set a specific amount aside each month based on what you can afford to save after things like retirement savings and emergency fund contributions. One of the easiest ways to stay on track is to automate your savings.

Roberge says that you could label that savings account your “build wealth fund.” The importance of saving money here is to give you cash reserves that you can use when and how you want.

“I love saving money because it means financial security,” says Kara Perez, who founded a financial education company that aims to empower women by providing them with the tools and education to reach their financial goals. “Plain and simple, having money makes your life easier,” she says. “I save because I want my future self to have the same great lifestyle I have now. And I don’t want to get caught in a financial emergency.”

Perez recommends keeping money in a savings account to cover unexpected expenses and emergencies. She also suggests investing in a brokerage account to help grow your money for the future.

One of the most important reasons to save more money is to build your available funds so you can take well thought-out risks with less worry. If you don’t have any savings, it may be harder to follow certain passions. Take starting a business, for example. To be a small business owner, you’ll need money from investors to get started.

But if you set a savings goal and add to your savings each month you can explore new opportunities, even if they may impact your earnings for a period of time. Keep in mind that if you set off as a small business owner, paychecks could be slow to come at the start.

“Saving gives you the freedom to live life on your own terms,” says Matt Becker, CFP® and founder of a financial planning practice focused on new parents.

“When I lost my job three years ago, my wife and I used that as an opportunity to start the businesses we’d been dreaming about, rather than scrambling to find another paycheck as quickly as possible,” Becker says. “We could only make that decision because of the years we’d spent building our savings.”

The reason you should save money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have something to fall back on if the unexpected happens. And, if you have savings set aside, you may be able to take risks or try new things. Good reasons to save more money, right?

Whether you’re saving for a specific goal or simply preparing for the unexpected, building the habit of saving can pay off for years to come.

• Saving gives you more freedom. Having money set aside makes it easier to handle emergencies, pursue opportunities and make important life decisions with less stress about money. 

• Small, consistent savings add up. Regularly adding money to your savings can help you build financial security and reach long-term goals over time. 

• Start saving today. The sooner you begin saving, the more prepared you’ll be for unexpected expenses. You’ll also be better able to reach future financial goals. Plus, it’ll help build confidence in your financial future.

If you’re convinced as to why you should save money, you can start by opening an online savings account. And good news: It doesn’t take a total lifestyle change to become a saver. Once you’re in the habit of saving, you’ll forget there was ever a time when you didn’t save.

Think of your savings like a garden. With a top savings rate, like the one you can get with the 360 Performance Savings account, and a little consistency, you can watch your money grow season after season.