Saving money is always a good idea, especially if you are thinking of going self-employed. Whether your a high-earning or still making ends meet, you should be aiming to squirrel away as much as possible every month. Working out exactly how much you need to live (plus a little extra) when deciding whether or not to go freelance is crucial. However, it’s easy to overlook huge expenses in the planning process.
But what should you be saving for? Obviously, some cash for a holiday or new clothes would be great, but there are much more important things to keep some money aside for. Things that might not seem so important right now, but will be very beneficial for enjoying later life. Here are a few things that sprung to mind when planning my finances, this will mean some extra hard work and the odd sacrifice!
This isn’t the most exciting thing to save for, but it is probably the most important. Dedicating a bank account for retirement savings will help you build up a lump sum of money you can live off once you have stopped working. It’s also a good idea to start paying money into a pension. Having savings will help you afford the best possible care in later life (things like a Live In Care Agency).
Want to get married soon? Planning can be a nightmare when your monthly income in constantly fluctuating. It’s said to be one of the happiest days of our lives, so it’s certainly worth saving up for! This will help you throw the celebration you deserve! Weddings are getting more and more expensive as the years go on so having savings will help you buy everything you need for your dream day. No one wants to cut down their guest list or miss out on their perfect venue. So save those pennies now, so that it doesn’t hold you back when the big day comes!
Your children’s education
Education is something else that keeps on getting more expensive. To give your kids the best possible start in life, start saving for college now. Even though there are many loans and bursaries available for students, having some money for them to pay off most of their fees is advantageous. Taking out a loan for college will only get them into debt. One great way to save for your kids is to open a bank account in their name once they are born and deposit a small amount each week. You’ll be surprised how quickly the funds build up!
Big home repairs
We never know when our home might need necessary repairs. Even though we can’t prevent accidents or certain types of damage, we can still be prepared. Savings can help you out of a sticky situation if you ever need to pay for expensive home repairs or replace something. Not having enough savings could mean you slip into the red, and can cause a lot of stress!
Periods when work is slow
It’s impossible to tell the future, so it’s difficult to know how long your clients will be secure for. The economy could run into trouble overnight and, as a result, place your career on the line. Hopefully, this will never happen. But save up some money for unexpected unemployment, just to be on the safe side.
As well as these important things to save up for, don’t forget to leave yourself some cash leftover to enjoy life’s luxuries once in awhile!