Why Is Saving Money Important and How Do I Keep Track?

You’re trying to buy the house of your dreams. It’s a little hard to get the buyer to go down to a price you’re comfortable with though. Guess you should have done more than the minimum down payment but that’s all you could do. Why is saving money important for buying a home?

One reason is that buying a house is often expensive and this means you should keep more money in your savings. It’s not the only reason why you should be fluffing up your savings account though. Keep reading to find out more about why saving money is important and see how you can keep track of it all.

1. Why Save Money?

There are a million reasons why it’s good to have plenty of money in your savings account. The main three are it acts as an emergency cushion, retirement, and house downpayments. 

It Acts as an Emergency Cushion 

You never know when your car is going to break down or some kind of medical emergency is going to come up. If you’re not prepared you may be left with no other option than spending money you don’t have or sell something. Having cash in your savings account gives you a little cushion for emergencies such as these so you don’t have to make that choice.  

Retirement 

Are you planning to retire at some point? If so then you’ll need money in your savings account to cover you when you aren’t working anymore. All it takes is saving at least a hundred dollars a month to make your retirement fund build up in no time. 

Downpayment for a House

Being able to make a large downpayment on a house will impact how much you can negotiate. You may be able to get your dream home for a much lower price or at least get a smaller interest rate.  Larger down payments will mean a smaller mortgage as well so you’ll be spending less on your home each month. 

You can calculate how much you’ll be able to spend on a downpayment, as well as how much you can afford for a monthly mortgage payment by using a compound interest calculator. They’re also great for investments, so keep this resource in mind whenever you’re trying to save money and get a better understanding of what the outcome might be.

2. Have a Notebook 

Now that you know why you need to save money let’s go over how you can keep track of it. The easiest way is to use a notebook to write down every dollar you spend. At the end of the month, you can transfer this data to a spreadsheet so you’ll still have it when you inevitably have to buy a new notebook. You can also use a check stub maker to create copies of your paystubs to stash away in the pockets of your notebook. 

Why is Saving Money Important and How You Can Do It?

Why is saving money important? If you want to be able to retire or buy a house you’ll need to have a lot saved up. The extra money also works as a nice cushion in the event that an emergency comes up. The great thing is that it’s not too hard to keep track of your expenses. All you need is a trusty notebook to get started. 

Keeping track of your expenses is only half the battle. Check out my blog’s other daily tips on how to save your cash better, too. Read more here.