How To Save For Anything Life Throws At You
No one can predict the future, not Mystic Meg or professor Trelawney from Harry Potter. Sadly, this puts the average person in a spot of trouble. Without a crystal ball or tea leaves, how are you supposed to save enough money to survive?
It’s a good question because financial stability revolves around putting money away for a rainy day. The great news is you don’t need to channel your inner medium to safeguard you or your family’s future. Instead, you can focus on the scenarios you know to exist and to be expensive. Here is a selection, for your information.
People of a certain age hate the R word. The reason is that it makes them feel old and obsolete. If you are one of these people, your lack of self-esteem could get in the way of your future. Sorry to burst your bubble, but people get older and have to retire at some point. Therefore, it is essential to save enough money to be able to live a comfortable life.
Seeing as financial advisors recommend saving at least $1 million, it is better to start sooner rather than later. After all, there are major expenses such as housing, healthcare, and tax to cover.
No, no one expects a fully grown adult to save for a potential post-graduate course. Further education is good, but it has to stop at a certain point in a person’s life. In this respect, saving for college is not for you, but for your children. There are two things about a university which every parent understands.
One is they want their kids to go, and the second is it is pricey. However, if you start saving for their education as soon as possible, you will cover the majority of the cost. Some parents even begin putting money away before they have kids.
Although a person never knows when legal strife will strike, the numbers suggest it will happen. For instance, there are 15 million lawsuits every year in the USA. That means there is a 5% percent chance you could get hit with a suit, which is up from 1% in recent years.
And, suits are the only trouble to consider. As Acme Bail points out, criminal charges can occur out of the blue as everyone makes mistakes. In this case, you will need a good lawyer and money to pay the bondsmen. Remember: a day in court is not cheap.
The current employment stats are not happy reading. Yes, Trump celebrates the fact he has ‘created’ over 200,000 jobs, but it is only 20,000 more than expected. Quite simply, the economy and therefore job production is going through a sticky period at the moment. As a result, it isn’t rare for job security to be at a low point. If you happen to lose your job, your savings will be vital to keep your head above water.
As a rule, these are the things you should save for regardless. After all, you never know when one of the scenarios above will occur.