Skip to main content Skip to chat

Should I keep saving for the future?

October 27, 2023

Written by Tangerine

Key takeaways

  • Having some savings helps provide financial security, and can make it possible to take chances on things like going back to school or investing in your passion.

  • A financial safety net can help get you manage unexpected expenses.

  • No matter how small an amount you set aside for your savings, it adds up over time.

Should I keep saving for the future?

You're a careful saver, stashing away a bit of cash every payday. But is there a nagging temptation in the back of your mind urging you to spend it all as if there were no tomorrow?

Maybe you scroll through social media and see people living the dream, and you're even more compelled to think, “Screw the savings!" before heading off to go live your best life in the Îles-de-la-Madeleine. 

In the end, are we breaking our backs at work trying to save for nothing?

Let's talk about it.

Retirement isn't the only reason to save

Maybe you're thinking: “Right, they're about to tell me that a worry-free retirement starts with saving as early as possible." Well, that is true. The sooner you start putting money aside, the more you'll have for your golden years.

But the truth is that retirement isn't the only reason to save. Having some savings helps provide financial security, can allow you to take chances on things like going back to school or investing in your passion, and helps alleviate money anxiety.

Research shows that64% of Gen Zers thought about changing jobs in 2023. Because Gen Z and Millennialsvalue more rewarding jobs, they tend to switch gigs frequently. Having some savings set aside can help you pursue your dreams, even if the next paycheque may be a while away.

As you build your savings, you're actually working toward your goals. And those goals could be retiring with full pockets, but they could also be more short term, like buying a camper for a true #VanLife experience in the North Coast, B.C. or buying a three-day pass for Osheaga. The Îles-de-la-Madeleine may be far away, though perhaps closer than you might think.

Save yourself from uncertainty

Saving money can provide security, which is especially comforting when the future seems uncertain. 

A financial safety net can help you manage unexpected expenses. Whether it's fixing damage from a flood, a car repair, or something as annoying as a dishwasher on the fritz, having a little nest egg can help make these situations less daunting.

Picture this:MJ and Alex, two globetrotters and content creators, had $12,000 worth of AV equipment stolen only to discover it wasn't covered by insurance. Thankfully, they had enough money saved to repurchase the essential gear needed for their work.

The best way to ensure your rainy day fund is big enough (without spending too much time stressing about it) is to have an amount automatically transferred into your savings account on a regular basis.

No matter how small an amount you set aside, it adds up over time. Just like little drops of water make a mighty ocean, every penny saved counts — the interest you earn will help your money grow more and more.

Try out a savings calculator to see how much you could save. You might be in for a nice surprise!

So … should I save?

Of course, the future is full of uncertainties. Life is unpredictable. It is what it is.

Remember that a penny saved is a penny earned — we know it's not as thrilling as the YOLO mindset, but the gray-haired version of yourself will be thankful in a few decades.

Plus, having savings can help you pay for the lifestyle you want. Maybe that's travelling or retiring early (sometimes really early, likeJean-Sébastien Pilotte at the incredibly young age of 39!).

And don't forget about those automatic deposits into a savings account. You'll thank yourself when you get up in the morning and watch the waves roll in off the coast of the Îles-de-la-Madeleine.

This article or video (the “Content”), as applicable, is provided by independent third parties that are not affiliated with Tangerine Bank or any of its affiliates. Tangerine Bank and its affiliates neither endorse or approve nor are liable for any third party Content, or investment or financial loss arising from any use of such Content.

The Content is provided for general information and educational purposes only, is not intended to be relied upon as, or provide, personal financial, tax or investment advice and does not take into account the specific objectives, personal, financial, legal or tax situation, or particular circumstances and needs of any specific person. No information contained in the Content constitutes, or should be construed as, a recommendation, offer or solicitation by Tangerine to buy, hold or sell any security, financial product or instrument discussed therein or to follow any particular investment or financial strategy. In making your financial and investment decisions, you will consult with and rely upon your own advisors and will seek your own professional advice regarding the appropriateness of implementing strategies before taking action. Any information, data, opinions, views, advice, recommendations or other content provided by any third party are solely those of such third party and not of Tangerine Bank or its affiliates, and Tangerine Bank and its affiliates accept no liability in respect thereof and do not guarantee the accuracy or reliability of any information in the third party Content. Any information contained in the Content, including information related to interest rates, market conditions, tax rules, and other investment factors, is subject to change without notice, and neither Tangerine Bank nor its affiliates are responsible for updating this information.

Tangerine Investment Funds are managed by 1832 Asset Management L.P. and are only available by opening an Investment Fund Account with Tangerine Investment Funds Limited. These firms are wholly owned subsidiaries of The Bank of Nova Scotia. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.