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Right now, times are definitely harder than we are used to. However, there are still some important savings to make now if you can afford it, for a better chance of future prospects.
Saving for a Home
Buying a home is everyone’s dream. It means you can provide a safe place for your family and even use it as an investment later on. There are properties listed everywhere, from city centres to farms in the middle of nowhere. So there’s never a shortage. However, market prices can fluctuate wildly. And mortgages are risky. You can lose your home completely by not keeping up with mortgage repayments. Yet saving for a home means you can buy your own, and eventually, you will own it outright.
Your Pension Future
The importance of a pension cannot be understated. Depending on where you live, you could automatically get pension support from the government when you retire. In the UK, we also have workplace pensions which your employer legally has to pay into the same way you do. HOwever, the minimum contributions are not necessarily enough to secure a comfortable retirement so it is therefore recommended you pay into a private pension also. This will ensure you have that little bit extra to live a comfortable life later on.
Savings to Make Now Include Education
The cost of education has skyrocketed over the past ten years. For example, the average cost of a university degree course is around £10,000 to £20,000 per year in the UK. Where once, a student loan would cover the entire cost of a course, now it might not be enough. So whether it’s for yourself or your children, it is wise to begin a university fund to meet a shortfall or even pay for an education in full to beat the huge loans.
An Emergency Fund
As you probably know, anything can happen at any time. From your fridge breaking down to a home emergency, unexpected things can happen. So it makes sense to always have some money you can fall back on should anything happen. Most advisors recommend you have around £5,000 spare in your bank account, which is a pretty large sum. Yet for most minor issues, £1,000 should be enough to replace something if you don’t have insurance.
Fulfilling a Dream
What’s the point of making it to retirement only to do nothing once you are there? You must have something you want to do. Some dreams to fulfil. Perhaps you want to trek through the Amazon, buy a farm, or build your own home on your own land. Whatever it is, you can enjoy your retirement much more if you squirrel away some money for the thing that will make you happy when you have no work to do. Then you can make the most of the time you have left.
Summary
There are a few important savings to make now for a better future. These include saving for a home, your children’s education and money to fulfil a specific dream after you retire.
