Financial health is all about looking to the future. As such, it’s a good idea to start saving as soon as you’re able to! And whether that’s today or in a few months time, you’ll soon have a money pot that’s overflowing with some rainy day money.
However, we can also take this principle one step further. Seeing as there’s going to be a lot of things you’ll need to save for as you get older, it’s best to put the funds together for them right now. It’s a great way to support both yourself and your loved ones.
But what should you be saving up for? Let’s go through three of the most beneficial savings accounts to have, whether you’ve got a literal piggy bank to fill up or not!
A Business Fund
Do you have a business of your own? Maybe a small side hustle you have big plans for? Or perhaps you’d like to start a business sometime in the near future? Then get saving!
In the USA, a business costs around $3000 to start, but if you’re working solely from home you might be able to shave off a few dollars here and there. As a general rule, you should have around 6 months of your salary in the business savings before you put forward the money to start a company of your own.
An Educational Fund
Maybe one day you’d like to do a graduate degree course, or maybe even go for that doctorate you always planned to? Or maybe you’d like there to be a college fund available for your kids, if they decide to go through higher education?
If either of these possibilities could apply to you, make sure you’re putting together an educational fund as well. There are a lot of schools of thought around what you should save for education, but most people tend to plump for the ‘one third’ rule. This dictates that you should be able to stump up around a third of the total cost of the degree either you or your child want to do.
A Funeral Fund
Of course, one day you’ll have to think about what happens at the end of your life. And we all know just how expensive a funeral can be! Whether you go for a direct cremation or a ceremony that’s more complex, it’s going to cost a big portion of your budget, and it’s a good idea to save up for it to make the planning process easier on your family.
And with the average funeral currently costing anywhere up to $15,000, there’s a good chance you’ve got a lot of saving to do! You can also take out a life insurance policy or funeral plan to make this goal more achievable, but it’s always best to have savings to fall back on.
As you age, there’s a lot of saving you’ll have to do along the way. Start with the money pots listed above.