Long-term saving is just as important as short term saving. But, what’s the importance in saving so much money? Everyone has different goals and obligations – everyones need to “save” is different, but there are some fundamental things you should think about when it comes to saving money.
In this article, check out the 8 Things You Should Be Saving For:
1. Paying off debt
Debt can feel debilitating – so first things first, pay off your debt. You need to dig yourself out of the hole that you created in the past. The thing with debt, is it follows you for the rest of your life if you don’t get on top of it. Once you’ve gotten ahold of your past debt, you can focus on your future financial goals without worrying about the stress of debt.
2. Unexpected health emergencies
You never know when medical emergencies are going to peak their ugly head. It’s important to be prepared for whatever life throws at you. Insurance helps the cost of medical issues – but even with insurance you can walk away spending thousands of dollars for even the smallest of issues. If you don’t have insurance, start saving right away. You don’t want to find yourself in need of medical care without any money to pay for it.
3. Loss of job
People get laid off – that’s a sad truth of life. You don’t know when and if you ever will, so prepare for it. Maybe you have an accident that causes you to be out of work for a while. This can add up quickly. Although savings can run out quickly when you lose a job, it’s better to be safe than sorry and it gives you time to find another source of income.
You might be surprised at the number of people who put this off until it’s too late. Start a future retirement fund – whether it’s a 401(k) through your employers or through your dedicated savings if you are self-employed. There’s no reason we shouldn’t be thinking ahead no matter how young we are.
5. College funds for kids
Some people start saving for their kids’ college fund before they are even born. That seems a little over zealous – but it’s a good idea to start saving as soon as possible. Whatever you can attribute to the fund each week or month doesn’t matter, what matters is the role you’re taking in offsetting the extreme high prices of higher education. While there are funding options available such as grants, loans and scholarships – a little extra money to throw at it can’t hurt.
6. Home and car repairs
It’s only a matter of time before your dishwasher or engine gives out. There are hefty prices to pay when it comes to maintenance of cars and homes. Better to be prepared.
7. Life’s luxuries
Things like emergencies, bills, home and car repairs and other necessities come first. However, life wouldn’t be the same without a little treat every now and again. If you love coffee and you want to be able to get a $5 latte every now and again – you can! Save up for the little things in life that make you happy.