BrightDime Basics: Saving

Recently in BrightDime Basics, we covered Budgeting and Setting Goals; both important concepts when you want to save for the future. For the next couple of weeks we will be unpacking what it means to save, the best ways to save, and some important things everyone should be saving for and why.

What does it mean to save? Saving is the deliberate act of setting money aside and we need to save money for a variety of reasons. Some are specific future goals we’ll need to pay for like buying a home, sending kids to college, or going on a vacation. But we also need to save because we can’t predict the future. Having a safety net of savings is important, both mentally and financially and will reduce financial stress. We don’t know when we may have an unexpected expense (like a medical emergency or car repair) or experience a financial hardship like losing a job. When you save, you’re actually investing in your future. Saving part of what you earn now in order to secure your future is one of the foundations of financial wellness.

So what’s the best way to start saving and when? You’ve probably heard the saying “pay yourself first”; it means automatically setting aside savings before paying for other things. Treat it like a bill that you have to pay. It’s important to treat saving as equally, if not more, important than other things you spend money on every month. By starting this habit early, you build yourself a safety net and you get the power of compound interest over time.

Ready to start saving? Just login to your BrightDime account and chat with a coach.