What are the benefits of saving early?

Kolleen Schocke |

For many Americans, the art of saving is something that they have yet to master. This may be especially true for those who have just entered the workforce or have gotten their first good-paying job. The mantra of these professional men and women is often to spend instead of save and it’s time that changed. Below are some of our favorite benefits of saving early and how it can set you up for future success.

Gets you in the right mindset

As a new employee, you may be limited in your spending and saving habits. You will have a salary and you could have student loans, rent, and other bills or debt to tackle. Establishing a 15% savings baseline is a great way to get into the right mindset for your future self. No matter how far you go in the company, that 15% baseline will allow you to mentally prepare to put that money away for the future, and your future self will thank you!

Creates the nest egg for a home

A popular goal for professionals is to purchase their first home. A starter home or a condo does not come cheap these days and starting to save early in your career can give you a leg-up. If you are planning to own or want to purchase an income property while you focus on your career, starting to save while you’re young is a great way to plan for your future.

Grows your emergency Fund

Whether a downturn in the economy leads to layoffs or a loved one gets sick, having an emergency fund is one of the best ways to save and protect yourself for the future. Most financial experts suggest saving up to three months of your salary or six months of expenses. An emergency fund is to be used as needed but make sure that you replenish the fund or else it will be useless the next time you need some extra cash.

Teaches you to budget

Finally, and most importantly, the best benefit of saving early is that it forces you to determine a budget. Budgets can be intimidating, but at the end of the day, they are the key to living within your means. There are plenty of tools to create and draft your budget but chat with a member of our team if you want to fine-tune it to your needs.

Setting up good savings habits at the beginning of your career is a great way to kick start your financial plan. You will thank yourself later for the choices you make today.


C-J Advisory, Inc. is a registered investment adviser located in San Jose, CA. Registration of an investment adviser does not imply any level of skill or training and is not an endorsement of any regulatory agency.