Saving money is not just about having a financial plan. Putting some money aside will give you security for the future. Whether your financial goals are big or small, short-term, mid-term or long-term, setting them can help you navigate through life with confidence. Whether you are preparing for retirement, planning for emergencies or even dreaming of a big purchase at some point in your life, having specific financial goals and a robust savings plan is essential.
In this guide we explore some important financial goals and provide some tips that will assist you to achieve your plans.
Retirement security
Planning for retirement is essential if you want to maintain your lifestyle and cover your needs when you finally stop working. The first step is figuring out how much money you will need to have in order to retire comfortably. Consider pension funds and take advantage of employer matching contributions if available. To make sure that you make consistent contributions, automate your savings and frequently review your strategy to ensure it aligns with your retirement timeframe timeline and also your risk tolerance.
Emergency fund
Having money tucked away for emergencies is essential to handling your money wisely. Think of it as a safety net that catches you if something unexpected happens, like suddenly losing your job or facing an unplanned expense. A good strategy is to set aside at least three to six months’ worth of living expenses for such unexpected circumstances. When putting together this emergency stash, quickly getting to your money is essential, therefore make sure it is easily accessible, yet separate from your everyday spending money. This way you will avoid unnecessary withdrawals.
Unexpected expenses
Life is full of surprises, and unexpected expenses. Car repairs, home maintenance, unplanned travel, or wedding arrangements are some of the expenses that can arise unexpectedly. Having savings set aside for such costs can reduce stress. Consider allocating a small percentage of your salary to a separate account specifically for these types of expenses. This proactive approach can provide financial security and peace of mind when life throws unexpected challenges your way.
Big purchases
Is it your goal to purchase a brand new car, make a down payment on a house, renovate your current home or equip it with new electrical appliances? Saving for big purchases requires disciplined money management. The best way to start is to set a timeline and researching the cost of your big purchase. Have in mind that inflation affects the market and prices might change, so make sure to consider this when making your calculation. A Fixed Term Deposit Account can be a more suitable type of account for achieving this kind of goal, since it offers higher interest rates than any other bank accounts. This approach will allow your savings to grow, bringing you closer to fulfilling your big purchase.
Education
Education is a big chapter in everyone’s life. In case your goal is to save money for your education, or that of your children, planning ahead will ease future burdens. Start your savings early in order to maximize earnings and make sure to research scholarships and grants that will also help you reduce the amount you need to save.
Children
Having children can be financially depriving and preparing for these responsibilities is crucial. Clothes, nursery and medical expenses are just some of the things that you should be prepared for. In the long term, you should consider education, living expenses and also extracurricular activities. Setting up a savings account dedicated only for children can help you effectively manage the costs and secure their future.
Vacations
We all deserve a break and yet vacations can be expensive, so we have to think twice if we can afford them. Plan your vacations early by researching locations you want to go, the best season to be there and cost of living. Set a budget specifically for holidays, look for deals on airfare and use reward points to save on your spending.
Tips to enable savings:
- Create a budget: Set a monthly or yearly budget and adjust it by setting limits to your expenses. Through the myAncoria app you can easily set your budget and be in control of your finances.
- Keep track of your expenses: Try to keep track of your monthly expenses. This way you will have a clear picture of your expenditure. In this way, you will be able to identify what your recurring payments are and what is unimportant therefore avoiding it.
- Set up saving goals: Whether small or large, set specific goals. Having a clear purpose for your savings makes it easier to prioritize and reduce unnecessary spending.
- Open a savings account: Consider opening a savings account. This is a secure way to accumulate savings.
- Apply the 50/30/20 rule: This rule means you should spend half of what you earn on things you need, like food and housing, 30% for things that make life fun but are not essential, such as movies or eating out and the remaining 20%, for savings.
Saving money can be a stressful procedure. From retirement planning to vacations, the financial goals that you will set will help you build a solid foundation for a solid future. Don’t waste any more time. Start saving today and follow a system that aligns with a comfortable lifestyle of your choosing. Ancoria Bank offers a General Savings Account, a Children’s Savings Account and also various Fixed Term Deposit Accounts that can help you take the first step towards a financially stable future. Just choose what suits your needs and goals.
