The Emotional Benefits of Saving

Written by Renee Hanson, Personal Wealth Advisor

 

According to the Bureau of Economic Affairs, the savings rate of Americans is on the upswing.  Rising from the deplorably low rates recorded in 2005, when the average American barely saved 1 percent of disposable income, the average savings rate has passed the 5 percent mark for the past 18 months. Here are a few reasons why you should jump on the savings bandwagon.

Peace of mind. Financial worries are a leading cause of stress, and stress can have a detrimental effect on both physical and mental health. Saving can help you manage life’s twists and turns, such as a change in employment status or an unexpected hospital bill, without compounding your anxiety.

The joy of self-discipline. Putting money aside for a future goal isn’t always easy. It may mean denying yourself something you really want. Yet following through on a savings goal and choosing to defer gratification can help instill pride and self-confidence, which translates to an enhanced state of well-being.

Smarter spending. I’ll speak for myself here, but when I take a more disciplined approach to saving, it’s easier for me to separate my wants from my needs. As a result, I’m more likely to make smart purchases that I don’t regret later. Saving toward a purchase (instead of buying on credit), also helps ensure you can actually afford what you buy.

More pleasure. Planned purchases tend to provide more satisfaction than impulse buys. It’s fun to think about and anticipate the pleasure of a new car, or a vacation, or even a night on the town. By postponing a purchase through saving, you can make the joy of an eventual purchase last longer.

Indulge in the urge to save. Just as the pennies you save add up, so too, do the emotional benefits of scrimping. So if you’re wondering what to do with the cash that remains after your bills have been paid, consider setting aside a portion in a savings account. It not only makes good sense, it feels good, too.

 

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Renée A. Hanson, CFP®, CEP®, CDFA™, CFS, is a private wealth advisor with Hanson, Ayala & Associates, a private wealth advisory practice of Ameriprise Financial Services, Inc. Her passion is in helping women achieve their dreams and financial goals, regardless of life’s many obstacles. Renée is licensed/registered to do business with U.S. residents only in the states of AZ, CA, CO, GA, IA, IL, MI, MN, MT, NH, NJ, NM, NY, OH, PA, SC, TX, VA, WA, WI. Please visit: www.reneehanson.com to learn more.

 

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

 

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