There is constant pressure from financial experts that you should have money set aside in savings. Even if you live comfortably month to month and feel you have enough, it’s still essential to put aside a reserve.
There are a variety of reasons why you might need an extra amount of money. Here are some of the best goals to have in mind for the money that you put aside in savings.
You never know when unexpected circumstances could come your way. It’s important always to have at least several months worth of your salary to cover emergencies. Anything could happen from getting injured, ill, or even losing your job.
Ideally, your emergency savings should be enough in proportion to how much your home and living expenses cost. In order to make sure that you can carry yourself through a sudden emergency, you’ll know you have enough money tucked away.
Going on a trip is a wonderful luxury which is fun for the whole family. However, anyone who’s traveled before knows that it can take years to pay off a trip put on your credit cards.
Rather than paying top dollar in interest rates, start a vacation savings. Putting aside a vacation fund every month can make it possible to travel once or twice a year. If you live in Texas, just rent rent a party bus in Amarillo to go to your destination in style.
When you’re saving for something enjoyable and fun, it’s extra motivation to save.
It’s incredibly important to save your money for your retirement. The earlier on that you start putting money away, the less you’ll have to worry when the time comes. You can take advantage of the interest that will build over the years leading up to your retirement.
When you get out a calculator and crunch numbers, it’s shocking to see how much you save over several years. Even saving as little as a $100 a month will grow exponentially over the course of a decade with interest.
Buying a House
When the time comes that you’re ready to buy a house, you’ll be able to negotiate a lower price when you have a higher down payment. Not only will the overall price get knocked down, but you’ll also be eligible for lower interest rates as well as more home options.
Children’s College Fund
Why not help lift the burden of student loans from your children and start saving for their education as soon as possible. In order to get a decent job, it’s important to have a degree.
With tuition ranging from nine to as much as thirty thousand dollars a year, it’s no small price tag for them to take on.
Even though you may not be able to pay for their entire education, you can at least help them carry part of the load.