Savings can help you fulfill your dreams of buying a house, traveling the world, pursue your passion, and even have a backup in case of emergencies or unplanned expenses. By setting aside small amounts of savings every month, you can accumulate a large sum over time.

Still not convinced? Here are 8 reasons how savings help you live life your way.

1. Lesser dependency on monthly paychecks

All of us crave for freedom to own our time as it is a luxury to do things of our own will. When you save enough to sustain yourself comfortably, you have the liberty to make life choices that are not dependent on your paycheck.

Whether it’s leaving a draining job to pursue your passion, or starting your dream startup, or investing in someone else’s startup, the benefits of savings and investments are multifold. You can take these calculated risks stress-free.

2. Have access to an Emergency Fund

Emergencies in life arise unexpectedly. Worrying about money should be the last thing on your mind in times of crisis. Whether it’s an expensive medical bill, a sudden job loss, or an unforeseen car repair, it’s crucial to have an emergency fund ready to help you tide over the difficult days.

Ideally, you should have enough money in your emergency fund to help you cover four to eight months of expenses without a recurring income.

3. Help Others Financially

When you invest, your money grows. When your money grows, it puts you in a position to help others in need of cash. Whether it’s helping a friend start a new business or contributing to an NGO, disposable income empowers you to help and uplift others.

4. Live your dream lifestyle

Whether it’s a destination wedding you desire or building your dream house by the ocean, or drive around a C-Class Mercedes, savings can help you fulfill your lifestyle dreams. It doesn’t have to be large amounts. To begin with, start small but save consistently to reap the rewards of your compounding investments for the rest of your life.

5. Reduce Your Taxable Income

When you invest in certain investments, you can reduce your taxable income. Earnings made from some investments are tax exempted and can improve your return on investment. Plan your taxes wisely and save for a better future.

6. Live a Debt-Free Life

Constantly relying on your credit card for monthly expenses is not a wise financial practice. You need money to pay off your monthly credit card bills to avoid late charges or penalties.

Constantly being in debt could add unnecessary pressures in life? And, who needs more of that!

Saving, investing, and practical financial planning can help you limit your borrowings and manage repayments stress-free.

7. Travel the world

Travel is probably one of the best reasons to save money. Is doing a world tour a part of your bucket list? If yes, then consistently saving can help you manage finances in a way that allows you to indulge in such travel frequently.

8. Retire early

Who here does not want to have the option to retire early and lead a slow lifestyle that allows spending time with family, traveling, and pursuing one's passions? Saving early and investing right can help you plan for your retirement wisely.

Paison ki Seedhi Baat

Save now to have the freedom and independence to live your best life. Start with small steps and slowly increase the momentum and build your portfolio.

If you’re ready to take the first steps towards saving, you can use My Money App, a personal budgeting and expense tracking app, to help you gain control of your finances.