No savings goal? No problem. Six smart reasons to keep saving
4 min | 14 August 2023
We all know that we’re supposed to save. It’s good financial advice we’ve been told all our lives. But as adults, many of the ‘big purchases’ that come to mind can feel out of reach. So, if we’re not saving for anything in particular – why save at all?
First off, what do we mean by ‘big purchases’? Well, at the top of the list is buying a home. But as house prices rocket skyward, most people find that the first rung on the property ladder is simply too high. Considering that the average house in the UK costs nine times the average income, it’s no wonder.
Though property is generally the biggest sum of cash most of us would save for, weddings can also be a huge expense. But since low-cost weddings can still be just as magical, we needn’t dole out thousands for the big day. As for cars – leasing can be an option. And holidays – once the money’s saved, it’s promptly spent. So, if there’s no clear goal, why should we save? Here are six compelling reasons to keep up the saving habit even if there’s no big purchase on the horizon.
It will definitely rain
The rainy-day fund is so named for a reason – the clouds will always open, and you’ll want some cover. Whether it’s an unexpected job loss, a broken appliance or much-needed support for a loved one, there will always be the need for emergency cash. If possible, saving 3–6 months’ worth of expenses is ideal.
Even if you don’t have a £30k deposit on your mind, there will always be items you might like to purchase that come with a slightly bigger price tag. Whether it’s an outfit for a special occasion, a new phone, or a big birthday – having some savings will help keep these costs feeling like more of a pleasure than a pain.
When we have no wiggle room, we have fewer options. If you decided you simply needed to step away from your current role before finding new one, or retrain your skills, or even relocate – having a stash of cash will help open up your options. If you make more than your monthly expenses, saving the excess is a good way to go. Because spending everything you have by the end of the month limits the decisions that are actually feasible.
The credit and debt trap
Put simply, if you’re left in the lurch in need of some cash, your next option will likely be credit. Though using credit cards can be helpful – and can often be part of a great method of building credit scores – over-dependence on credit could lead to a slippery slope.
There are plenty of practical and financial reasons to save a bit of cash. But we can’t neglect the importance of our well-being. When we’re stressed about how much cash we have, or if an unexpected payment lands at our feet, it’s far less worrying when we have a buffer. For the sake of a bit more peace, having some savings can be a well-being wonder.
This is an obvious point, but we simply don’t know what the future holds. Whether it's kids, further study, or eventual old age, the future’s coming, and we’ll probably need a bit of cash for the unforeseen events that are on their way.
Whatever you decide to do, look after your money. Chase's easy-access saver account lets you start saving with as little as you like.
18+, UK residents. A Chase current account is required to open a saver account. T&Cs apply.