It’s a fact of life that we need money to get by. We have to pay bills, buy groceries, and put gas in our cars. However, while most of our expenses are day to day things, there are some things that we should plan ahead for. You probably have some things in your future that you’re going to be able to want to afford, not to mention the curve balls that life can throw at us, forcing us to spend a large amount of money unexpectedly. The best way to handle these situations is by building up your savings. If you haven’t started to do so yet, here are just 5 situations in which it would be beneficial.
Your Child’s Future
Every parent wants their child to have a bright future, no matter how old they are. You want them to be able to afford to go to a good school if they want, or help them to purchase their first car. We work hard so that we can provide a good life for our kids, and help them out when they need it. In order to be able to do this effectively, you need to plan ahead and start saving up now. You can’t expect yourself to have enough money for college tuition magically when the time comes, but by putting away a little bit at a time in the years prior, you make the goal much easier to achieve.
Your Own Future
Besides your kids – or if you don’t have any – you want to plan for your own future. A day is going to come when you no longer want to work every day, and you’ll need to live off of your savings. Retirement should be a time of fun and relaxation, but you won’t be able to do this if you are worried about money all of the time. There are plenty of ways to go about saving for retirement, so take some time to look at all of your options before making a plan. The sooner you start, the better off you will be when the time comes, so try and put a plan into action as soon as you can.
Medical Emergency
Of course, not everything you need to save for is going to be years away. Some things could happen any day, making it important that you always have some savings stocked away. Medical emergencies can happen at any time, and insurance doesn’t always cover all of the costs. As an example, if you receive motorcycle accident injuries, you could then have medical bills to pay, along with having to live off of savings while you’re out of work. Medical emergencies come on us all unexpectedly, which is why it’s important that you are prepared for the worst when it comes to you, your family, and even your pets.
Home Emergency
Besides becoming injured yourself, your home can also receive damage, in which case you’ll likely have to dip into savings. If your home catches fire, floods, or experiences damage from a storm, your insurance might not cover everything. You may also have an issue like your furnace breaking down in the middle of Winter, in which case you’d have to get it replaced as soon as you could. As with medical emergencies, you never know when this sort of thing can happen, but by building up some savings now, you can deal with the problem more easily when it arrives.
You Want To Make A Big Purchase
Finally, not everything you’ll be spending your savings on has to be bad. Perhaps there is just something you’ve been wanting to get yourself, but it’s expensive and you can’t afford it yet. By putting away a small amount towards your goal each week, you can start to compile your savings, and eventually get that thing you’ve been after. Maybe you’re looking to upgrade your car, or take your family on a vacation. Whatever it is, you can start saving up now, and when you’re finally able to get it, you’ll appreciate it all the more knowing what it took to save up for it.
Start Your Savings Plan Today
Hopefully you see that these 5 situations alone are enough of a reason to start building up your savings. You don’t have to do much – just determine what you can afford to put away each week, and then open up a separate savings account. This is a great place to start, and when the time comes that you need your savings, you’ll be happy that you put something away, no matter how small.