We all need to be saving money in our lifetimes; it’s one of the biggest assets a person can have to their name, and it really does make our own little worlds go round. And if you’ve got a family to look after, money is the main thing you need on your side to ensure your little ones stay healthy and happy!
But of course, there are some things in life we can’t anticipate, and then have to fork out for. The key is to save up for these potential happenings before they take place, to ensure we’re never going bankrupt over an emergency or two.
So, here are some of the bigger things in life that you should be putting some money aside for. If they’re relevant to you and the way you live, make sure you note them down and keep them in your budget.
In the Case of Debt
Debt is something that affects about 80% of Americans, and despite this, it’s something we all never wish to come across in our lifetimes. Of course, some debts are better than others, and can even look good on your credit report, but debt is still a very scary thing to have to face down and deal with.
If you went to university, there’s a good chance you’ve still got student loans on your tab. If you use a credit card, you probably have some credit issues you need to pay off. All in all, debt is quite common, and saving up to pay it off should be as well.
It’s all about knowing when to pay off your debts, and knowing how much to save up for them in comparison to other household expenses. You want to pay off your credit card debt each and every month, as well as your mortgage payments (if you have one), but otherwise, you can put half of your savings portion of your income away, and the other half towards things like student debt, or any other type of low interest debt you may be carrying.
Big Expenses for the Kids
The kids are going to want more and more things as they grow up, until they’re making money of their own and are able to afford things off of their own back. And a lot of these expenses can be really big, especially on your family sized wallet!
One of the biggest things you can buy for your kids is their own form of transport. Your kids are going to want their first car one day, after passing their driving test, and you might really want to buy one for them – what do you do? You need to know what to budget for. A first car needs to be safe and practical, most of all, rather than aesthetically pleasing and capable of going from 0 to 60 in 3 seconds.
Illness or Injury
Illness and injury can strike at any time, and they can be a real pain! These are times when you can’t work, or you’re on a reduced schedule, and they’re also times when expenses can skyrocket. As a good rule, you’ll want to put away about 3 to 6 months worth of your regular income for times like these; this can sit as a good pile of cash to get you through the usual healing process, and gives you time to look for alternative means of income if need be.
Of course, it’s a long way away yet, but it’s good to start saving up for funeral expenses right now. You never know when a member of your family or a close friend may pass, and it’s always better to have some money in the bank for dealing with such a situation. You don’t want to cause yourself or your loved ones any more stress than they’re already dealing with, and having enough money available for things like coffins, funeral services, and headstones could be a great way to cover for this.
So, are You Saving Up Enough for Your Family?
Some of the bigger things expenses in life can really put a hole in your savings account, so make sure you know how to budget, how much to save, and what to spend on. Savings don’t have to be complicated, and as long as you’re happy splitting things down the middle and parting your cash a bunch of ways, you’ll be able to budget and save your way through just fine.8