Answering this question truthfully could be the key to changing your financial preparedness. Another way to word this same question is "what difference will it make in my life if I become a saver?"
Think about the stress that comes when we are living paycheck to paycheck and an unexpected expense pops up. How to we cope with the strain on the budget. From talking to a number of people, I understand that many of these unexpected expenses just get put on the credit card. Why is that a good thing? The interest rate on a credit card is 11%-18%. Why throw away the money to the credit card companies. So, Why become a saver? Savers set aside money in an emergency fund to cover those unexpected expenses. Savers spend less than they earn. Savers plan and prepare for a dream vacation, a new car, a wedding, a computer, etc.
What is the benefit of deferred gratification?
Deferred gratification helps us to save for expenses such that we earn interest on our money until we have sufficient money saved to pay for the planned expense. Deferred gratification also helps us save the money that we would have spent on interest if we had borrowed money to pay for the expense.
Savers are much more prepared for a comfortable retirement. They have more than just social security to live off of. Savers make sacrifices now that will allow them much more freedom down the road.
You and I should be or become savers in order to have peace of mind now AND enjoy financial flexibility in the future.
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