Home & FamilyMoney5 Things To Start Saving For Today

5 Things To Start Saving For Today

As we put the children in preschool my husband and I have come to the realization that we need to start saving more now so we are more prepared in the future. We’ve set back a little money for things but saving is something you can sometimes easily forget or overlook.

Here are 5 things that we’ve started saving for today:

Child’s Education

Sending your child to school can get pretty pricey and the older they get the more money it takes to get them through school. According to the U.S. Department of Education in 2010 it cost a little $15,000 to send a child to a four year public school and more than $32,000 to send a child to a private school. With prices of everything going up, it’s safe to assume that over the years the cost of schooling will go up as well. Start saving now to help with those school costs!

An Emergency Fund

I believe everyone should have an emergency fund. This is money set aside for anything that may pop up unexpectedly whether it be a broken furnace, car breakdown, losing an income or unexpected health expenses. All of these things can happen at any time and having an emergency back up fund can make life a whole lot easier. If I remember right the rule of thumb is to set aside enough money to cover at least 3 months of normal expenses.. in my honest opinion it’s probably a great idea to go as far as 6-8 months worth.

Retirement

I’ve always heard it’s never to too late to start saving for retirement and I believe it too be true! It’s a fact that the sooner you can start saving the longer you have for your money to grow. Retirement accounts like (IRAs) and 401(k)s are probably the best places to start when it comes to setting up a retirement fund, fixed term bonds can help also since they are longer term investments.

Retirement can be a stressful time if you find yourself struggling to meet your financial obligations. However, you can use the equity in your home to relieve that stress by applying for a reverse mortgage. When you do so, your reverse-mortgage lender will dole out portions of your home’s equity to you each month. Those funds can be used to make you more comfortable during your retirement, pay medical bills, or even allow you to take a trip you have always wanted to take. The choice is yours. You will have complete flexibility because the full loan balance will not come due until the home changes ownership through your death or relocation.

I would definitely recommend doing lots of research when it comes to setting up your retirement plan so you know you’re getting the best return on your investments.

Vacations or Big Ticket Items

It’s always a good idea to set aside some money for those fun adventures you’ve always wanted to take or those bigger items you’d like to have (new car, luxury items, etc). By putting just a little back each week or every other week you can start a fund for those things you’d like to do or buy that you wouldn’t normally have in your budget.

We set aside money each year to go on vacation like many other families do. It’ll soon be time to purchase a new car so that will be another thing we are wanting to set money back for.

House

Renting has both pros and cons but in my opinion it’s definitely better to own your own house. I had a friend who started saving money right out of high school for a house. She wanted to have a very good down payment, at the least, so she could afford her dream house without any problems. W

I’ve always heard that with a larger down payment you not only get better rates but you can also negotiate much more effectively. I’ve never bought a house yet but I’m betting it’s true!

 

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