There are two kinds of people in the world, with two kinds of mindsets – those who live from paycheck to paycheck and those who save up a little every month (for a rainy day) and put aside some of their income towards investments for the future (such as a house or child’s education).
It is always a sensible thing to save up, if possible, however little an amount – because over the years, the few pennies and pounds do add up to a significant amount. And if you have some extra cash which you don’t need at the moment, it can be wise to invest it as your investment will only reap more rewards for you in the future.
Here are some reasons you might want/ need to save up for…
Buying Your Own House
It is every couple’s dream to own their own place – be it a flat or a house. Especially if you plan to have children and grow your family. Besides it being something that brings you contentment, it is also a wise decision in the long run as rents (especially in major cities in the world) are exorbitant and it makes more sense to put that money towards a mortgage for your own house than to give to a landlord each month.
But getting on the property ladder is no mean feat and needs a good investment to even get started. Which is why it makes a lot of sense to start saving from the time you start earning – even a few pounds a month can help by the time you are ready to buy a house.
Saving For Your Child’s Education
One of the greatest gifts you can give your child/ren is a good education, and often, that costs money. It is a parent’s decision whether they want to educate their child in a private school or a public one but for more information you can read more here.
If not for school, then you have to keep in mind further education such as college fees – and if you have more than one child it will only double or triple. So having a steady amount saved or a continuous investment over the years will help ease the pressure when the time comes.
Save For An Emergency Fund
Life is uncertain and emergencies can arise anytime. It could be an accident, a lifelong disease, loss of job, a global pandemic – it is for situations and times like these that emergency funds come in use. If you have saved for unforeseen circumstances over the years, you will not be left in a pit when faced with an emergency; but will instead have ready funds to tackle it head on.
Save For Retirement
We tend not to think so far ahead but retirement is something that will eventually come. And you will only feel the pinch once the income stops coming in but the expenses continue. On the contrary, there could very well be additional expenses due to old age such as medicines, old-age home fees or 24/7 care.
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*This is a collaborative article