If you have not already started, it can never be too early or too late to start saving for your financial future. Unfortunately, however, too many of us miss the boat on our savings plan and find ourselves in financial difficulty with no ready means to make repayment. If this applies to you, here are some easy steps to how to save money for your financial future:
Before you do anything else you need to set-up a savings account into which you can deposit enough money to cover all your bills for the next 90 days. This way, if you lose your job or become sick, you will not need to worry about covering all of your short-term debts. Moreover, even once you have reached your target of being able to cover your bills for the next 90 days, still add to this savings account every month as it is very likely that the level of your expenses is going to go up over time as you increase your income.
Too few of us have adequate insurance. If you do not have any insurance you need to seek a consultation with an insurance advisor to determine if you need to get cover for:
- life insurance
- medical insurance
- long term care insurance
- car insurance (which should be a legal obligation if you own a car)
- credit insurance, which insures against you not being able to repay your credit in the future.
Each of these insurance schemes has its merits, and depending on how much readily disposable cash at the end of each month you may want to consider one or all of the above.
With the manner in which savings can compound, with interest being payable on interest, you should never think you’re too young to start saving for your retirement. Unfortunately, too many of us do think like that and encounter problems when it does come to time to retire – needing to make drastic life-style changes. Ideally you should also be using your retirement savings plan to minimize your taxes of today, so talk to your accountant about how you can use an IRA or Roth IRA to not only save for your retirement, but also minimize your taxes of today!