We can all benefit from putting some savings aside, and not simply to fund a holiday next year or a loan on a new car. Here are just a few future plans that may cause people to invest their money.
You can insure yourself against possible future disasters
It’s useful to have an emergency fund set aside for life’s unforeseen disasters. This might involve a hefty medical bill, veterinary costs or paying for reparation after a fire or burglary. Such an emergency fund can often eliminate the need to take out insurance schemes such as medical insurance or property insurance, which could save you money in the long run. Alternatively, it could allow you take out insurance schemes but lower rates dramatically by being able to pay a large excess amount – useful for lowering your car insurance rates.
You can give your kids a good start in adult life
Many parents will set up a savings account for their kids that cannot be accessed until they are 18. This can be great for giving kids a good start in life, either to pay to learn to drive, to lay a deposit on a potential property, to pay for higher education or simply for them to spend at their leisure. There are lots of special children’s savings plans out there.
You can retire to a life of riches
Even a good pension doesn’t go far in this day and age. Putting money aside for retirement planning might allow to live out your senior days in the luxury you deserve after all those years of grafting. You may be able to put it towards traveling the globe or potentially towards buying your dream home. It could even simply offer an extra source of income so that you don’t have to budget from week to week and can enjoy the freedom of retirement.
Better still, you can retire early
The retirement age is constantly going up and there’s no guarantee that we’ll be in a fit state by the time it comes along. Saving up some extra money might allow you to retire early whilst you’re more likely to still be in good enough health to enjoy it. For those that want to travel this can be particularly worthwhile considering. Some people have even been able to take up new sports and active hobbies in their retirement by giving up work early.
You can fund your funeral
Whilst it may be a pretty bleak prospect, pre-paid funeral plans are very popular and may not even involve that much of an investment (if you start early, you may only need to pay a couple quid a month). Planning ahead may allow you to get all the criteria that you want for your funeral without those left behind having to pay for it. Funerals are constantly getting more expensive, and so arranging early could save you a lot of money.