Is It Better to Save Early or Later?
Without a doubt, saving is a virtue. No one can deny this statement. However, as humans, we tend to prioritize enjoyment over saving. Many young people do not start saving at a young age and instead postpone it to a later stage in life.
First, saving means a continuous, repetitive action every day, every month, and every year. Thus, a saving habit is one where you make an effort to save every month until the year you retire.
The benefits of saving are primarily as follows:
1. Cultivating the Habit of Saving: By saving regularly, you develop a consistent habit that becomes second nature.
2. Becoming a Disciplined Person: The regularity and commitment required to save instill a sense of discipline.
3. Emergency Funds: It’s essential to understand that we need to prepare at least six months' worth of expenses as emergency funds.
4. Opportunities for Investment: Having savings allows for more opportunities to invest or to pay off loans from the bank early.
These are the outcomes your saving habits and discipline can help you achieve. However, this requires you to sacrifice the following aspects of your personal plans:
1. Enjoying Life: Such as annual vacations.
2. Reducing Unnecessary Expenses: For instance, dining out frequently should be replaced with cooking at home to save money. Additionally, habits like drinking and smoking waste money and should be avoided.
3. Purchasing New Cars or High-End Electronics: Buying a new car every five years or frequently upgrading to high-end electronic products should be avoided.
My View
Saving early is undoubtedly more beneficial than saving later. The discipline and habits formed by saving regularly from a young age provide financial stability and security in the long run. It may require some sacrifices, like less frequent vacations, dining out, and purchasing high-end gadgets, but these sacrifices are worth the financial freedom and opportunities for investment that come with early saving. Prioritizing saving early on sets a strong foundation for a secure financial future.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
