Written by Tangerine
Friday, October 27th, 2023
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 that 64% of Gen Zers thought about changing jobs in 2023. Because Gen Z and Millennials value 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 yourseslf 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, like Jean-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.