In life, it can be easy to take all of your disposable income and spend it. The majority of us come up with a budget, where we take our income after tax and other necessary deductions, remove the essential costs of living and leave ourselves with a number that we are able to comfortably spend without worrying about slipping into debt.
But you don’t necessarily have to spend your disposable income in full every month. Sure, it can be tempting to go out or to buy nice clothes and luxury meals. But saving can allow you to buy some of the bigger, more expensive and finer things in life. If you’re not sure what you might like to save to invest in, here are a few ideas, as well as tips and tricks to get you started.
Biggest Investments to Save For
First let’s take a look at a few things you might want to consider saving for. The right thing for you will depend entirely on you as an individual, your interests and your preferences. But here are some of the most common.
A House
For many people, the biggest life investment will be a home. Nowadays, increasing numbers of people are renting, as wages are staying stagnant and the price of living is rising, making it increasingly difficult to save a deposit and secure a mortgage. But if you are able to put away money and eventually build your credit score and deposit, a house could be the best investment that you can make. Getting the keys to a property that you can truly call your own will give you a lot of freedom. You can rest assured that you won’t be asked to leave your home at the end of a tenancy. You can make changes to the property as long as you’re able to get planning permission. You can really make the space your own!
A Car
Having a car can make your life so much easier. Sure, public transport can be great. If you live in a city, chances are, there are plenty of different public transport options on offer and you’ll be able to get everywhere locally quickly and easily. It’s also much better for the environment. It’s a greener and more eco-friendly option. However, cars just come hand in hand with so many perks. When you have a car, you gain absolute freedom over your movements. You can travel where you want at whatever time you want. You don’t have to abide by public transport timetables and can leave at whatever time you like. You also get to travel from your doorstep straight to your destination, without having to worry about walking between bus stops, train stations and your chosen destination. Plus, you get to carry more things. You don’t limit yourself to what you can carry in your own arms as you get on and off buses or trains. You have a full vehicle and boot space to make use of. Of course, there are countless different types of cars that you can choose from. Finding the right one will depend on a number of factors, such as budget, the amount of space you need, how many seats you want, how much boot space you want, speeds you want to reach, fuel type that you want to use and more. Once you have an idea of what type of car you want, make sure to visit a showroom like Hoffman Ford and speak to a sales representative who will be able to make personalised recommendations for you.
A Holiday
While many of us will take shorter or cheaper holidays on a regular basis. However, if you’d like to travel the world or take a longer getaway to a more expensive destination, you may want to save for a holiday. Consider where you’d like to go the most in the world and start researching it. Come up with a plan of how much the entire thing will cost. Consider flights, accommodation, days out, admission to spaces, events or venues you like, the cost of meals and more. This will give you a rough budget that you need to save in order to be able to go!
Saving
If you’ve decided what you want to save for, it’s time to actually start saving. Now, this can be easier said than done. But it’s possible and a few different steps or techniques can help you to get there. Here are some suggestions to take into consideration.
Create a Savings Account
The first big step towards saving is to open some sort of savings account. This is a space where you can store your money, separate from your usual account that you use for your bills and spending. There are plenty of different savings accounts out there, some with eventual purchases in mind. For example, a LISA (or “lifetime ISA”) tends to be the chosen savings account for people saving to buy a house. When choosing an account, make sure to look at the interest rates attached to different options. Generally speaking, higher interest is better. Also look at terms and conditions, such as whether you can withdraw the money as and when you want, whether there are fees or fines for withdrawing early or anything else.
Cut Down Non-Essential Spending
There are plenty of things that you can spend on. But when you’re saving with a goal in mind, try not to buy non essentials. This will leave you with more money to put into your savings pot and will help you to reach your goal sooner. Whenever you’re buying something, ask yourself, “do I need this or would I like to reach my goal sooner?”
Saving really can be a great step towards spending your money more wisely or on things you’ll benefit from more. Hopefully, some of the above information will give you some ideas and will help you to get started out on the right foot!
Thanks for reading and y’all stay dandy.
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