Have you ever found yourself wanting to put aside some money for savings only to find yourself questioning whether or not it’s actually worth it? Do you wonder if the $100 you save each month for retirement is going to help, or if the $10 extra per month you pay above the minimum on your credit card statement will be worthwhile? I would argue yes to all the above points. In my opinion, even throwing an extra couple of dollars into the savings account is worth your time and efforts. Too often I think a lot of us don’t make good (small) choices with our finances because we don’t think it’s that worthwhile. Here’s why this attitude is flawed:

Build good habits

One of my big mantras is that if you can’t manage a little bit of money, how can you expect yourself to manage a lot of money? If you’re not able to run a balanced budget (i.e. not spending more than you make each month) on a little bit of income, how will you manage when your income grows? There will always be bills to pay, and somehow they seem to grow right there with your income! More temptations come with more income and if you can’t say ‘no’ now, you won’t be able to say ‘no’ then!

By starting earlier in your professional life (and with less money), you’ll find yourself developing good habits. You won’t think of your paycheck as all your money; you’ll learn to think of about 70-80% of your take home as your money. Moving money into your retirement and savings accounts will become second nature. Additionally, you’ll learn to say ‘no’. You’ll learn to prioritize things like savings, and learn that spending falls 2^nd in line. Little by little, you’ll see both your overall balance (thanks to interest!) and contributions grow. Before you know it, you’ll find yourself heading straight towards financial freedom.

These good habits you develop now will stay with you for the rest of your life. That’s why even the simple practice of setting $25 aside each month is worth it now!

Grows your wealth

Hopefully you are no stranger to the concept of “compound investing”. This means that your money is always growing for you. 5% interest on a $100 investment will be $105 in the first period and then $5.25 in the next period, all from your initial $100 investment. This principle is why paying debt sucks (your credit card bill will grow if you don’t pay it off each month) and why having a savings account is awesome (a little more each month!). Even if you’re contributing $100/month to your retirement fund, or $100/month to a savings account, that money will grow! Having your money set aside growing for you sure seems like a better option than wasting it on something fleeting like an appetizer at dinner or any piece of clothing you’ll wear twice. Despite the size of your savings/investments, every dollar counts!

Go ahead and get the notion that you’re too young or too poor to save out of your mind. Saving at any age and at any income level is worthwhile. Not only are you creating good habits that you’ll carry on with you for a long time, you’re also building wealth! Get in the habit of saving now!