Save for What? Six Saving Objectives That May Apply to You Today
Saving money is an affair which takes time. While saving up, it’s easy to lose track of your objective and eventually, at some point, make an unexpected spending. Or you may slowly lower the percentage that you cut from your income so you get a bigger expenses fund. Saving is an important factor for any individual. You may have certain needs and desires and so accordingly, you can save money from your surplus income to achieve these needs and desires.
Here are six objectives that you should consider which are very much relevant to you.
Short Term Desire
Everyone has a short term desire that they want to fulfil. An expensive car or that dream home you want to purchase. You probably have a short term item that you want to purchase for yourself, but it is a little too expensive for your monthly income to afford. Hence, you slowly collect funds for it. With this objective your will want to set a timeline so you can achieve it and move on.
The parable on investing in the Bible gives a good tip on financial saving. In the parable, a master gives his servants money to save and two of the servants invest it, increasing the money. Saving money, investing it and doubling the amount is an age old savings objective. No one wants to just save money, but double and triple it while it is hatching in an account. There are plenty of options from fixed deposits to equities and shares to choose from.
Education is not a cheap affair and it can continue till you’re in your senior years. Plus you don’t want to depend on your parents and neither do you want to take a loan. Hence, saving money for a top grade education should be a priority.
Set an Emergency Fund
Any financial expert will tell you that setting up an emergency fund is very financially sound. You never know when you may be hit with a health problem or lose your job due to an economy in turmoil. No one can predict when you may be struck with a sudden problem. At such times, you will find having a huge chunk of funds at your disposal will be very assuring.
Pay off Debts
In this cashless world, you probably have a few credit cards in your pocket and maybe you’ve even take a few loans. This means you owe a financial institution some money and every month you have to subtract a percentage of your disposable income for this. Things like home loans and car loans can take a full year to be paid off. By saving enough money, you can swiftly pay off the loans, so they don’t drain your financial resources.
When you are retired and off your job, it’s time to complete your bucket list. It is at that time you have the free time to go out and do what you want, but do you have the money? Saving money and planning for your retirement is very important because these are going to be the years where you are not going to get a steady income. Good luck!