QuestForAMillion.net

We all know it’s better to have money rather than not have money.  Obviously being wealthy and having a lot of money is even better.  But why do we want to get out of debt, have savings, and live below our means?  What advantages do you get, if any, by having extra money?

Here are 10 reasons it’s better to have some money, in no particular order:

• Higher Insurance Deductibles - if you have some extra money in savings you can afford higher insurance deductibles.  If you have higher deductibles, your monthly premiums are smaller.  If you have money, you essentially pay less for insurance.
• Emergency Fund - if you have money, you don’t have to pay emergency and unexpected expenses with credit.  If you don’t use credit, you don’t pay interest.  If you don’t pay interest, it’s much easier to earn interest.
• Take Advantage of Deals - if a really good deal comes up on something you use or are planning to buy anyway, you can take advantage of it if you have money available.
• Save For Retirement - people living paycheck to paycheck often can’t take advantage of the tax savings and possible employer match offered by putting some money in the company 401(k).  Often these people need every cent of their paycheck just to get by.  In this case if you have money the government, and possibly your employer, will give you more money.  People with excess money can also take advantage of Roth or regular IRA contributions and tax advantages.
• Better Credit - if you have money you can afford to pay your bills on time, which is the largest factor in your credit score.  A better credit score will often get you a lower interest rate on loans, saving you more money.
• College Savings - in families living paycheck to paycheck, kids will often need to rely on student loans to finance college.  If parents can afford to set some money aside for college, the kids can graduate with a more solid financial foundation.
• Safety - if you have money you can afford to live in a safer area and driver a safer car.
• Better Health - stress is lower because you’re not worried about how to pay for your obligations.  You can afford health insurance and you can afford to pay for better/healthier food (organics, fresh fruits and vegetables, etc).
• Emotional Well-being - lowered stress levels help here as well.  You can also generally sleep better and have a more relaxed outlook on life.
• You Can Make More Money - there’s some truth the saying “It takes money to make money.”  If you want to invest in stocks or bonds you must have money.  If you want to purchase real estate you must have money.  If you want to start your own business you must have money.  Sometimes you can use other people’s money for these things, but very often you must have some skin in the game with money of your own.

These are some of the things in my life where I find I’m grateful that I have money.  I don’t have as much as I’d like, but I’m getting there.  Are there any reasons you can think of where it’s beneficial to have money?