With so many wants and needs in our lives, it seems like we are always saving money for something. There are many large purchases you may not be able to afford easily and will need to save for in your lifetime and sometimes it can be difficult to know what you should save for first. Of course, some things are more important than others and priorities are different for everyone, but here are some of the most important things you should really start saving for right now.
A New Car
Whether or not you have a car right now, you will eventually need to buy another because unfortunately unlike houses, cars do not last a lifetime. Depending on what model of car you’re looking at, buying a new car can be expensive and stressful, so having savings set aside for one is most definitely a good idea.
Buying a house may not be something you are interested in doing right now, but it is likely a goal you would like to achieve at some point in your lifetime. Houses are expensive and constantly rising in price in pretty much every part of the world, so you should start saving for one as soon as possible. Although it is one of the largest purchases you will ever make, the good news is once you own a home you will own it forever and may never have to buy another one.
Having an emergency fund is extremely important no matter how young or healthy you are. Health emergencies, natural disasters, car trouble, home repairs, and veterinarian bills are just a handful of major expenses that can come up unexpectedly at any time and blindside you. Having an emergency savings fund set aside is very helpful to have in these situations.
Retirement may feel so far away from where you’re at currently that you might not think you need to start saving for it yet, but it’s never too early! Make sure you consider things like medical care, assisted living or retirement homes, vacations you may want to take, plus regular bills and life expenses that you will have to pay for, all without having income. Once you realize how much money you actually should have for your retirement, you’ll be in a rush to start saving for its as quickly as possible.
Kids College Funds
If you have children, no matter how young, you should already be saving for their futures. They may or may not decide they want to go to college and that will be their choice to make, but if they do choose to go the higher education route and don’t end up getting scholarships, you don’t want to hold them back because you didn’t think ahead. Start saving for college tuition right when your kids are born and by the time they turn 18 you should be in pretty good shape.
Saving money can be fun and addictive once you get the hang of it, and it’s much easier when you have something you really want or need to save up for. Start saving for the things on this list first and then think about some other things to add to it!