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3 Reasons to Start Saving Early

Category: Finance

In a 2016 survey, researchers found that only about 7 in 10 Americans have savings that are $1,000 or less. What’s more alarming is that out of the 7,000 survey participants, 34 percent said they have nothing set aside for their savings.

When it comes to saving money, the best time to start was yesterday and the next best time is now. Here are some of the reasons you should start saving early. Keep these in mind and begin researching banks in Connecticut where you can start your savings account.

When you’re young, you can take more risks

One of the perks of investing when you’re young is that time allows you to make more risks, even the ones that are not calculated. When you’re older, you’re more cautious with your money, and you do not want to lose any of it.

But when you’re young, and you invest your savings in a calculated risk, when it flops, time allows you to get back on your feet and earn it all back while your earning potential is still high.

When you save, you spend less

This is a no-brainer. Of course, when you are saving money, you will definitely spend less. But you can also think of it this way.

When you know where you’re money is going – perhaps you are saving for your own college education fund, a home, or a car – you tend to spend less now because you’re planning to spend your money on something big soon. Therefore, your spending habits also improve.

You can save yourself from big debts

Do you know that approximately 40 million Americans graduate and live with student loans even after they graduate? Yes, that’s right. In fact, the graduating class of 2015 had an average student loan of about $35,051.

What’s good to know is that it’s possible to graduate without a hefty student loan to weigh you down when you’re just about to soar. Start saving early, that’s the key.

Save for Your Future

If you don’t know much about investing yet, start saving first. And when you have a base saving, you can begin investing here and there to grow your money. But remember step one: open a savings account.