4 Savings Ideas You Thought You Were Too Young For
No matter how young you are when you start saving money, there are some things that you should consider adding to your plans. If you thought that you were too young for the following savings ideas then it is time to think again.
A College Fund for the Kids
One of the biggest and most important expenses you will likely have at some point in your life is for your kid’s college fees. If you are planning on having children at some point, that is. If this is the case then the sooner you start putting away some money the easier it will be in the future for you to pay those bills. Even if you don’t have any kids just now, why not get started on putting something away while you can? Let’s face it, when a little one appears in your life you will have a whole lot more expenses and worries on your mind than you had before. The time when you are planning to start a family can be the ideal opportunity to put some money in a savings account. Provided that you make a wise investment the original amount you put in should have grown tremendously by the time you need to spend it.
Your Emergency Fund
When will you need an emergency fund? The simple answer is that you never usually know until it is too late. Bearing this in mind, wouldn’t it be fantastic to have your fund at least started soon? To be fair, if you don’t have a lot of commitments right now then there is less chance of you having an emergency to deal with. However, this also means that you should hopefully have some savings capacity you can use wisely right now. If you can have some emergency savings for when you get your first house or buy your first car then you will feel a lot more comfortable.
At some point you will probably need to get a life insurance policy sorted out, most likely when you buy a house or start a family. This doesn’t mean that you can’t do it right now, though. In fact, the good news here is that life insurance is far easier and cheaper to arrange when you are young and healthy. If you get a quote just now then you might be surprised at how cheap it is. In the future you can always get extra cover as your commitments build up. If you leave this too late then the passing of the years and any illnesses you suffer could make it a lot more expensive.
Your Retirement Fund
The idea of starting a retirement fund at any time is daunting. However, it is far more daunting when you are 40 or 50 years old than if you are 20 or 30. The earlier you get started on this the more time you have to get it built up. These days, we all expect to enjoy a long and active retirement of maybe 20 years or more. When you look at it in this way, it is clear that starting to save when you are young makes a lot of sense.
Do you regret not saving more when you were younger?