Having a cushion of savings is vital. Ideally, as soon as you enter the workforce, you should put aside some of your earnings every month for future use.
From your retirement plans to milestone events throughout your life, having decent savings is vital for being prepared for the future.
Here are a few things you should absolutely be saving for.
Pension
While all employers must offer an employee pension to any worker who has been with them for more than three months, it is wise to add to that as much as you can. The more that you can add to your pension pot the better, as it will provide peace of mind knowing that you will be financially secure in your golden years.
With the retirement age increasing frequently you will want a decent amount saved should you need or want to take early retirement.
Buying A House
Buying a house is a rite of passage for many young adults. This is becoming increasingly difficult in the current economy, so having a healthy deposit is key to getting on the property ladder.
You should try to start saving as soon as you can – even if you can’t afford to save more than £10 per month, eventually that will all add up. Being able to prove your savings came from your hard work will also put you in a great position when it comes to getting a mortgage.
Funeral Arrangements
While it may be hard to think about, most people will, at some point, have to consider funeral arrangements and costs. Having a cushion of savings is vital to ensuring that this process is as painless as it can be.
Some funeral plans now come under FCA Regulation. This is great for consumers as it ensures that you will get a fair deal and make the best of your savings. You can read more about this with Scott Robert, who are experts in FCA compliance.
Life Milestones
This can include weddings and welcoming a new baby to the family. With weddings more costly than ever, it is vital to start saving as soon as you can. Even if you aren’t engaged at the moment, it is worth starting to put some money aside for the future if getting married is something you know you want.
A new child brings an incredible amount of joy into any family. It would be best if you were sure you are in the best financial state possible before you consider starting a family. Having a child is a huge decision in any person’s life, so you want to be sure that you are fully prepared in every way, including financially.
Rainy Days
Some things in life cannot be planned for effectively. Emergencies around the house, last minute travel, your car breaking down – these are all things that can give your bank balance a serious hit.
That’s why you should be saving for any rainy days that may come your way, so that you have a cushion should things go wrong.
