You never know what life is going to throw at you, so the best thing you can do is be prepared. We’re never going to predict exactly what’s going to happen in the future, so it’s hard to be too prepared though.However, we can all agree that a lot of life’s big events all have one thing in common. Money. So, with that in mind, here’s why it’s best to start saving from an early age.
The ever-increasing state pension age
It seems that the state pension age keeps getting later and later and we feel like we’re going to be working forevermore. Whether you have a pension already or don’t have one yet, the more you put away towards it, the better it’ll be when you finally get your hands on it. But then there’s the other side of the argument too. Our pensions aren’t always guaranteed for one reason or the other and not everyone gets as much as they’d hope, so having a separate savings pot could do you a favour down the line.
We’re living longer
The age of retirement may be increasing, but we’re also living a lot longer these days too, so you need to make your money last. If you’re lucky enough to take early retirement, you could be sticking around for up to another 40 years or so without a regular income, so you’re going to wish you’d started saving sooner.
Big events
Life’s big events are always pretty costly; from planning your dream wedding and buying your first house to having a baby or losing a loved one and having to make arrangements with funeral directors. It helps having people around to support you through such times, but it helps even more if you’ve got a decent amount of money already saved up to help you along the way. No one wants to have to scrimp on their wedding day, so what’s stopping you starting saving now?
Emergencies
Aside from the big events that we’ve just spoken about,there are also the things that we can never prepare for, no matter how hard we try. If there’s a family emergency such as an accident or somebody falling seriously ill, you need to have ways and means of covering the cost. Especially as things like this tend to come at the worst possible time, normally when you’ve just forked out for one of big events mentioned above.
It all adds up
If you set up a good enough ISA which you put money in and leave well alone, you’ll begin to reap the benefits over time. Find one that offers the best interest rates and set up a standing order to put a certain amount of money in each month. The earlier you start this and the longer you keep it running, the more interest you’ll get paid each year, which will add up nicely over time. After all, every little helps. It’s never too late for you to start saving. But it’s never too early either. Start now and see how much you can put aside each month. You’ll be glad you did,thirty years from now.
