Wednesday, May 15, 2013

5 Reasons You Need to Start Saving Today

You never know what the future is going to bring. You may get that thousand pound inheritance that you’ve always wanted but can you really rely on it? You need to start saving money today. Even if you have debts, putting some money aside is worthwhile. Here are just five reasons to start saving now and live for the future.

1. Have an Emergency Fund Right There : You don’t want to get into more debt just because of an emergency. You should have to deal with overdrafts and credit cards to be able to fix the car, the boiler or even make sure you can have the medical treatment that is necessary. Saving money will mean that you have an emergency fund that you can rely on. This is the one type of savings account that you need to start, even if you do currently have debts. You never know when you will need money for something.

2. Save for Your Retirement : There are constant changes to retirement plans. The retirement age is getting further away and there is no guarantee that the law will remain the same by the time you reach that age! There’s no real guarantee that there will be a state pension when you come to need it. The best thing that you can do is save for your retirement – this is especially necessary if you are self-employed or run your own business. Work out the amount that you want to live on in the future and then how much you need to save each month to get there.

3. Save for Your Child’s Tuition : Tuition fees are constantly on the rise. At the moment there is a £9,000 cap, with the majority of universities opting for that, but that cap could change with the next government. If you don’t want your children to start off their graduate lives with thousands of pounds of debt, start saving for their future today. Even if they don’t go to university, that money will not be wasted; they could use it as a deposit on a house or something else that they want when they are old enough.

4. Save for Your Own Holiday : Everyone deserves a break but too many people worry about that because of costs. Instead of worrying about whether you can afford to go away, worry about whether your boss will give you the time off or whether the weather will be perfect! Start saving today for your holiday fund. It doesn’t have to be a lot, depending on the type of break that you want. This should also give you money to spend while you are away. You can then do it every year and take a break that you have always wanted.

5. Save for Your Luxuries : If there is something that you want to buy but know that you can’t afford it, save up instead of using credit cards! This will take some time and it may mean your luxury disappears off the shelves but something better is likely to come by. Buying it on credit will just lead to it costing much more in the long run with the interest that is added on and often costs more each month than you would actually need to have saved.

Start saving your money today, even if you are in debt. There are some that you can hold off for now but definitely start putting money aside for your retirement, emergencies and any luxuries that you really want. You will soon find that you are living a less stressed life knowing your finances are almost in order.

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