A key focus of my blog is Financial Literacy/Money. One of most basic financial intelligences is learning how to save money. While it isn’t the most flashy money habit, building a substantial savings can keep you out of trouble and open up doors that otherwise wouldn’t be open. The following contributed post is entitled, Setting Your Sights And Savings On The Future.
* * *
When it comes to saving for the future there are the obvious things that you’re probably already thinking about, your kids’ college funds, your retirement, unemployment, and medical emergencies are the ones at the top of most people’s list, but there are others too. While you might have fall back options such as access to settlement loans, or inheritance, it’s not ideal to rely on just these. It is better to save and not to overwhelm or panic you, but some of these could make you money, so it’s worth having a look:
Home and Car Repairs
Okay, saving for repairs won’t make you money it will certainly save it in the long run as repairing things is usually cheaper than buying new. If Your fridge breaks without warning and needs to be replaced or the transmission falls out of your car, it’s good to have at least $2,000 at your disposal so you can address the situation as soon as possible. Also, home or car repairs can have a knock-on effect on other parts of your life, for example, if you can’t get to work because you can’t afford car repairs, that situation could just get worse.
Rather than just saving for scenarios where you will never see the money again, here’s the bit where you can save and make money. If you have managed to clear your debts, don’t have many other expenses, and yourself in a position to save to invest, then this is a great position to be in. Saving for an investment property, in particular, can provide additional income by renting it out on a short- or long-term basis. This is usually a smart decision if you can afford it because of the positive financial implications down the road.
You could also be saving to become your own boss, if that’s something you aspire to be and depending on what type of business you want to pursue will dictate how much you’ll need to save. For example, an online business or consultancy which you can work from home with low overheads can be inexpensive to start up, but if you wanted to open a restaurant, then that will need some serious savings.
While you should definitely be saving for emergencies, medical bills, home, and car repairs, and other necessities, there comes a time when you need to treat yourself too. You don’t need to treat yourself every chance you get, but you could choose one big item to save for throughout the year. Perhaps a cruise or a new car? Whatever it is, making a conscious decision to save for it so you can enjoy some of life’s little luxuries.
Caring for Elderly Parents
It’s not a nice thing to think about, but it is inevitable that your parents will get to an age where they might need assisted living, and it’s good to be prepared financially for this. It’s becoming increasingly common now since people are living longer in general and because many older people have much less to live on these days due to the high cost of living.