You’ve probably heard at some point that you should have savings put aside for your family. However, knowing and doing are two different things. In order to find the motivation to make it happen, you should know why savings is important.
Experts recommend that you should open a savings account as early as possible. The sooner you start, the more that your return will be. If you saved a modest $100 a month for 30 years, you could as much as triple your investment with the help of interest. The more that you contribute, the more that you’ll gain. So, what does this savings come in handy for? Take a look t some of the important reasons that your family could benefit from starting a savings account.
Unexpected Unemployment
Unfortunately, sudden job loss can happen when we least expect it. Perhaps you suffer an injury which leaves you unable to work, or the economy slows down, and your job is terminated. You never know what kind of curveballs that life can throw at you.
If you have a nice amount of savings put to the side, you’ll have the peace of mind knowing that you can take care of your family. Ideally, you should have at least six months of savings put aside so that you know you can pay your rent and bills until you find a solution.
Retirement
Another incredibly important reason to save money is for your retirement years. Your children are not your retirement plan. It’s important that you have money put aside for the future when you’re not able to work anymore.
Consider investing in a 401(K) or IRA so that your investment grows as much as possible for your later years.
Investing In a Home
You probably want to own your own home at some point in your life. You may decide to expand your family, which calls for more space and freedom that a rental can’t always provide. Check out SoFi for more information on loans as they have their own pros and cons that you have to consider.
The more money that you have for a downpayment, the more negotiating power that you have. Saving as much as possible for a big downpayment will help you find the best possible home at a more affordable rate.
Family Vacations
It’s essential to create lasting memories for your children to fondly remember. Family vacations don’t come cheap, so having some savings put aside to afford them will help you make them happen more frequently.
Medical Emergencies
Even though we never want to imagine the worst happening, it is not impossible that something can happen to one of our family members when we least expect. Even with insurance, paying for medical expenses can be considerably costly. Having savings put aside ensures that you don’t have to worry about paying for their needs.
