"I don't need to save because I just started working!" or
"I earn enough to not be broke before the end of the month!" or
"I don't earn enough to even think about saving."
Many individuals, who are new to the working life, have similar reasons not to save. We are not taught saving as a habit at school, and it may not be all too stressed upon by our parents. So why should you save in your 20s?
#1. Live a stress-free life:
If you live from paycheck to paycheck, or don't plan your monthly expenses, you are basically dodging one financial problem only to get into another, because you are not prepared for anything in life, not even an unexpectedly high telephone bill. Want to avoid this potential stress? Save!
#2. To Have More Control Your Life:
"I don't need to save because I will take a loan on EMI if I want to buy a car or a house." Wrong! Banks won't give you a loan for a house or car without a down payment and an impeccable credit history, which is impossible to attain as a young earner. Even if you get your bank to agree for a no down payment loan, it translates to you borrowing more, consequently paying more in your installments. Save yourself from experiencing helpless situations and start saving to be in control.
#3. For goals:
Later in life, you might feel inclined towards pursuing another degree, traveling, or even buying something exorbitant. Once you start working, you wouldn't want to ask your parents or friends for money. It's better to have your personal stash of cash saved up somewhere than to rethink your goals altogether.
#4. Lifestyle upgrade:
You embrace a life of struggle for a better future. "Better" can imply a lifestyle upgrade of some sort. Be it traveling in business instead of the economy, or being able to afford expensive eating places every other day. Or to be able to afford your child's education in the best schools.
Each of these upgrades requires prior planning and money. And money takes time to be made and even more to be multiplied. So start right away and let compounding do its job.
#5. Factors beyond your control:
In turbulent times, when economies are struggling to produce a decent GDP, you never know when the next recession would hit. So while you struggle to keep your job, it is comforting to do so if you have saved up for a sudden job loss.
If these 5 reasons failed to convince you, just remember, a little extra cash never hurt anyone. And to get this amount away from the reach of your credit or debit card, you could always start here.