It’s important that you do anything you can when it comes to your savings in order to protect yourself throughout life.
Here are five savings you should be making throughout life in order to give yourself the financial stability and protection you need.
An emergency fund is something that is ideal for a rainy day. You never know what might go wrong one day and the financial implications that it might have on your household funds. Sometimes, these emergency problems can result in needing to make payments that are perhaps beyond what you earn in a month.
That’s where an emergency fund is worth having so that you can protect the income that’s coming into your bank balance each month. Make sure you’ve saved some degree of emergency fund, even if it’s a little bit each month.
House savings are something that is worthwhile having when you are looking to purchase and invest in your first property. It’s not as easy nowadays to save for a property of your own as it was prior, which is why it’s beneficial to start saving from a young age where possible.
According to one source, the average first-time buyer will need a staggering £62,500 deposit in order to get onto the property ladder. That’s a considerable amount of money and money that will take a while to save up, especially if you’re buying alone.
Life and Income Insurance
Protecting yourself and your assets is crucial when it comes to being financially stable. That means protecting your home, your income, and other financial assets that you might benefit from in your lifetime.
That’s where life and income insurance protection is worth having. It’s a small amount to pay each month but can offer that financial cushion you need in order to protect yourself should anything bad happen in your life which leaves you without an income.
For your family, life insurance coverage can be life-saving, especially when you’re the main breadwinner of the household.
Kids Savings Pots
Another important savings pot to have is your child or children’s depending on how many you choose to have. It’s always good to do what you can to save some money that starts them off in life later down the line.
Whether you’re looking to save enough for them to have a deposit on a property or to simply get themselves set up in their early 20s, it’s good to have a pot like this that you save for them from birth.
Finally, when it comes to saving for the future, there’s no better future than retirement to save for. Of course, we all hope we’d get to retirement age but it’s not one that you want to risk and not save for. Make sure you’ve made financial contributions to your pension to help support yourself when you’re no longer working.
While money shouldn’t be the be-all and end-all of your priorities, it certainly does help to have it, whether that’s while you’re young, free, and single to being in a four-person family household and beyond.