7 Important Things You Should Be Saving for

Did you know that there are a few important things you
should definitely be saving for? No matter how much money
you make, saving must always be a priority. However, it
doesn't mean you should open a savings account right now.
Establish several savings goals and consider these things you
should be saving for today.

1. Your children's education
If you have kids, you should definitely start saving for their
education. The average cost of 4-year degree is approximately
$20,000 so you cannot put off your saving unless you are a
rich person. The sooner you start saving, the better. You can
consider opening a separate savings account for your
children's education.

2. House
A house is perhaps the most important thing every person
should be saving for. Sure, it depends on whether or not you
want to buy your own house. If you want, achieving this goal
will require a down payment of about 5% for a conventional
loan and 3.5% for an FHA home loan. Be ready for it.

3. Retirement
Even if you are in your 20s, you need to start saving for your
retirement now. I think every person has to enroll in their
employer's 401(k) plan as soon as they are eligible. You can
also consider other savings options, for instance, open an
individual retirement account.

4. Car
A car is another thing you should be saving for. The great
news is that many dealerships don't require a down payment.
But, you need to know a down payment can help you
negotiate a lower interest rate. So, if you're going to purchase
a car, begin saving money and aim for making a down
payment of about 15-20%.

5. Job loss
If your company seems stable and you are doing a perfect job,
job loss can still happen and you should be ready for it. And
if it happens, you will need some money until you find
another job. Make it a rule to save some amount of money
every paycheck and you will be prepared for any situation.

6. Vacation
Unfortunately, most people don't even think of saving for
their vacation. They just go to work and pay bills, forgetting
about rest. However, you work hard and you deserve a bi-
annual or annual vacation. Begin a vacation fund and make
sure you deposit a certain amount of money into this account
monthly. Surprise your family with amazing trip, they as well
as your body will certainly thank you!

7. Splendid things
Do you want to buy a new flat screen TV or an expensive
dress? You can pull out your credit card, but it's better to save
up and pay cash. It's so easy to go into debt and so hard to
pay it off. Plus, you will not have to cope with interest
charges and you won't have any problems with your credit
card.

Whether your major goal is to take an awesome trip or
purchase a big house, you need to have a solid savings plan. It
may take some sacrifice and discipline, but it's worth it. Did
you start saving money?

Via: Amerikanki