There are times in our life when having a little bit of extra money set aside can be a big help. By starting some savings now, you can prepare for these future events.
Below are a few examples of things that could be worth saving up for in the future – and how you can start saving today.
Why save for the future?
A number of future events could be worth saving for. These include:
- Buying your first home: Saving up for a home is something everyone should be encouraged to do from their teenage years. Property is ridiculously expensive nowadays – without a large enough deposit saved up, you won’t be able to take out a mortgage. Even if buying a home seems a long way off now, it’s worth starting to save now.
- Other future goals: Want to one day get married? Want to travel the world? Want to get cosmetic treatment? These could be other things worth saving up for. Or maybe you want to invest in your own personal development by going back to university or hiring a business coach.
- Your kid’s future: If you have kids, it could be worth setting aside some savings for them. This could be money to help them find their feet.
- Your retirement: Having lots of money set aside for your retirement can allow you to live your latter years to their fullest. The earlier you start saving, the more you can save up.
- Your funeral: Death is something that many of us would prefer not to think about. However, financially planning for your funeral could be beneficial for the people you leave behind – by setting aside money for your funeral, you can prevent loved ones having to fund it themselves.
- A rainy day: None of us know what lies around the corner. Having money set aside could be useful for recovering from an unexpected disaster such as an expensive vet bill or a car repair bill.
How to start saving for the future
You can start saving money today. Many banks allow you to set up a savings account online. You can then start putting money into this account for a specific future purpose.
It could be worth setting up a standing order. This will allow money to automatically go into your savings account each month. Plan for it to go straight out of your account straight after payday so that you’re not tempted to spend this money.
Investing your money could be a way of further building it. A high interest account is the most simple way to do this – such accounts pay you a small amount of interest each month on your savings. You can shop around for such accounts here at Money Saving Expert. Alternatively, you could look beyond savings accounts and consider options such as forex trading and stocks. Platforms like MetaTrader 4 can help you to get started. Such investment options can be a little more risky, but you can make a much bigger return on your savings.
With each savings account or investment account, try to maintain a clear savings purpose. If you’re saving up for a deposit on a house, this doesn’t mean that you can dip into these savings for a holiday or a new pair of shoes. If you want to set up multiple savings goals, it could be better to set up multiple accounts.