1-In-4 Americans Have Less Than $1000 In Savings: 5 Reasons You Can't Create A Financial Buffer Soon Enough

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According to the latest survey from Forbes, more than one in four Americans have less than $1000 in savings, that's 28% of the population across all four generations. This year, at least 31% of the survey respondents plan to save between $2,501 and $5,000 — and they have the right idea because today building a financial buffer is more important than ever.

Here are five reasons why you should start saving today, not tomorrow:

Early Savers Build A Bigger Corpus

People who start saving early often find themselves in a much stronger financial position, because the sooner you start, the more your money has time to stockpile. Moreover, it’s not about adding more monthly money but using time in your favor.

Representational image of passage of time and the corresponding growth in savings | Image generated using Dall-E

Early Savers Ride On The Compound Pony

Saved money earns interest and as time goes by, you will benefit from the power of compounding as your earned interest also gathers interest. This will create a snowball effect. So the earlier you start, the more you can save.

Representational image of accumulation of interest over time | Image generated using Dall-E

Early Savers Have A Safety Net

Whether you want to pursue your dreams, switch careers, or take a sabbatical, having the safety net of savings gives you the freedom to choose. Once you have the money in the bank which continues to grow (because of compound interest) you get options, and that freedom is empowering.

Representational image of safety net filled with money symbolizing the security and peace of mind that savings provide | Image generated using Dall-E

Early Savers Have Better Peace Of Mind

According to the latest survey conducted by MarketWatch, 65% of Americans think finances are the root cause of their stress. Having savings can provide people with that safety net, where they don't have to worry about sudden expenses (like medical etc) or living hand-to-mouth, and thus have less anxiety about money.

Representational image of a person who can sleep peacefully at night without any stress because he is an early saver | Image generated using Dall-E

Early Savers Have Less Regrets

It's never too early to start saving money, but every missed opportunity can make it harder to catch up. For example, emergencies that require money don't give a notice before happening. Without a safety net, the possibility of having to take on debt increases.

Representational image of a person who has to choose between either being an early saver leading a prosperous life, or missing savings opportunities which can result in regrets later in life| Image generated using Dall-E

Photo generated using Dall-E

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