There are many benefits of saving money. This is why despite how difficult it is to save money and the many things often staring in our face to use the money for, we still strive to put aside some part of our income. Here are 5 major reasons why saving your spare change is important.
Easy saving technique
Saving your spare change provides you with an opportunity to save small money that will not look like a big deal when you are putting them aside. However, within a short time, you would be surprised at the tangible thing that you can achieve with that 1 cent, 5 cents and less than 1 USD that you have been saving over time. Thus, saving spare change makes it extremely easy to save. You can read on How to Invest Spare Change to see the experiences of other people and tips on how to invest your spare change.
Access to funds during an emergency
When you continuously save your spare change, they can become a fortress for you on which you can rest your mind whenever there is an emergency. You would not feel threatened about the possibility of an emergency. This is considering that emergencies often happen without prior warning and it could be extremely serious. A lot of people have been forced to borrow money, paid interest and subsequently entered into a recurring debt. Saving your change over time might be all you will need to escape going into debt. You can always treat the savings as a loan you don’t have to pay interest on if you use it on an emergency. You can subsequently refund it at the end of the month. However, you should not allow this to tempt you to always use it for every flimsy reason to return it. You might find it difficult to progress that way.
Access to funds for investment
When you have been saving your spare change, over time, it might become big enough for you to use for investment or use to start a business. If it is not that much, you can just put it on good stocks and hope that it would grow. With any luck, your capital might be worth over 10 times within a 5 to 7 years period. By the time it is going to be 30 years when you are retiring, it could be worth a small fortune.
Saving your spare change can also serve as retirement savings. For instance, imagine saving all your spare change devotedly for over 30 years. By the time you are 60 years, you would be surprised that all the spare change that you have saved has already amounted to hundreds of thousands of dollars. If you were putting them into investments, it could already be worth over a million dollars.
Another reason why you should save your spare change is that they could come in handy when you are faced with an opportunity. Imagine an acquaintance or seeing an advert of someone wanting to sell an item worth 1,000 USD for 200 USD just because he needs the money to solve an emergency. If it is an item you hoped to buy some time in the future, 200 USD from your spare change savings can get you the item and save you 800 USD. Even if you don’t need the item, you could easily resell it for between 500 USD and 800 USD and make a good profit.