Having financial freedom is contingent on having a little bit of money to fall back on in the short term and a lot of money to fall back on in the long-term. Your nest egg is your emergency fund as well as your retirement fund. Below are six reasons that it should definitely be a priority in your financial life.
One – Your nest egg will keep you from going into debt.
Life tends to happen unexpectedly. For most people, paychecks occur on a schedule. In the case of emergencies, you may not be able to wait on your next paycheck. Your nest egg will keep you from having to deal with credit cards and loans if something unexpected comes up.
Two – Having a nest egg will give you peace of mind.
Simply having money around is a de-stressor like you wouldn’t believe. If you know for certain that you have money that you can fall back on, then you will go about your day in a much more relaxed fashion, which will cause things to happen to you in a much more positive way.
Three – Having a nest egg will allow you to take more risk.
It is virtually impossible to take a risk if there is nothing to fall back on. Contrary to popular belief, the more safety that you have, the more risk that you are likely to take in a logical fashion. You will be able to assess risk much more thoroughly if you have the surety of the nest egg.
Four – Having a nest egg will allow you to leave something for posterity.
If you have something in your nest egg that you do not use for emergencies or for retirement, then you can pass it on. This is a great advantage for those people who have an interest in helping their family as well as themselves.
Five – A nest egg can be used as security for a line of credit.
According to a professional from Air Force Federal Credit Union, the savviest investors are often able to leverage their nest egg in order to obtain lines of credit in order to start new ventures, add on to housing or go back to school.
Six – The nest egg can be cashed in for more utility.
Most investment opportunities are quick in nature – if you do not have the funds to take advantage of them when the opportunity arises, you miss the entire thing. Having a nest egg will allow you to take advantage of things as they come along.
These are only a few of the reasons that you should grow your nest egg – there are many more. Regardless of why you choose to, there is never anything worse about having more money.