The future begins today - why it is worth saving
Statistics show that Polish people do not like saving money. Only a small percentage of our country's citizens declare having any additional funds on their accounts. Living the moment without thinking about the future is certainly pleasant in the short run. But an unforeseen problem is enough to lose financial liquidity having no savings.
Why do we not save? There are many reasons. The most frequently quoted argument is the one about inadequate earnings - "I do not save, because I have too little income". However, in reality it is only necessary to select financial instruments skilfully, so that even small amounts saved on the way let us protect ourselves against... bankruptcy.
Take care of a better tomorrow...
Let us take the role of a devil's advocate for a moment and ask the question: why to save at all? Life is so short and impossible to predict. So it is better to live the moment and enjoy what is here and now, right? Not necessarily. Especially since this unpredictability of life makes it very easy to lose financial balance and, if we have no small amount of savings at all, then we can fall into a debt spiral.
When will the extra money in the bucket be most useful? Let's start with the most pleasant reasons to save. Do you dream of an exotic holiday? Instead of taking a loan - save the amount you need. Want to buy a new phone? Give up the costs you will incur when you purchase it in instalments (or under your operator's subscription) and postpone the funds you need. When you start, you'll find that you do not need much to get your desired sum, and the satisfaction will be much higher.
Surplus funds are also useful in case of an accident. Sudden job loss? If you have some money in your pocket, you can look for a new one without any rush and without feeling the breath of the already exhausting debt limit in your account. Longer illness? You will recover more easily if you have some extra cash. And this is just the beginning of the benefits of saving.
... which will come in a few decades as well
When we are young and strong, we do not think about what will happen when we reach the retirement age. What will happen... retirement will happen! Probably yes, in the end, we keep it in mind by paying the obligatory pension contributions to the Social Insurance Company. However, if we look at the demographic situation in Poland and economic forecasts, we may start to be concerned. On the one hand, according to the Main Statistical Office’s data, the average life expectancy of an average Pole is becoming longer (in 2015 it was 73.7 for men and 81.7 for women). On the other hand, there is a declining birth rate, which means fewer and fewer people in the working age. So the question is - from which funds will the pensions of today's 30-40 year olds be paid up. The so-called social pensions are more often spoken about - the same amount that will be paid to each person at the retirement age, regardless of the amount of contributions paid to the SIC. It becomes evident that without additional savings it can be hard for a decent life after retirement. And while thinking about the autumn of life can be quite unpleasant, it is better to analyse the situation now than in a few decades, when it is too late to guarantee a peaceful future.
Saving is easier than you think
Cannot afford to save? And even if you can, do you prefer to keep the money in the proverbial sock instead of investing in financial instruments? This approach will not lead you anywhere good. Why? Because:
- You can save and invest even small sums - a good example of investing in loans offered by Fast Invest - even several dozen hundred PLN spent on an investment can bring up to 15% of profit per year, and in the long run, profits will become real,
- Investing in loans can not only be profitable but also secure - financial institutions offer you instruments that provide, for example, a possibility to pay the accumulated funds at any time and guarantee of profits,
- Given the phenomenon of inflation, the value of money has been changing over the years - even a small savings rate will reduce your losses.
How much to save? As much as you can. Experts say it is good to postpone at least about 10% of monthly revenue. And this is possible even with small earnings. Even a small reduction in expenditure can allow you to painlessly accumulate savings and start investing in the future. Try and make a better tomorrow today.