Why It Is Important to Save For Your Future Self
A television advert was recently launched and, in the advert, someone went back in time and said thank you to their younger self for making the right (financial) decisions, which in essence meant that they had a much better quality of life now than they would have done if the ‘ younger self’ had not made the right (financial) decisions. This advert struck a chord with us, and we thought what a good way it was to get the message across that starting to save early, no matter how small, will be doing yourself a massive favour for the future.
National statistics indicate that around 12.5% of UK residents have no cash savings while another 32% have less than £2,000 in their accounts. These are glaring indications of financial vulnerability. Having savings gives you financial security. You have the funds to cover your bills and emergencies. For instance, you can have a fund for unexpected expenses to cover expensive medical bills, car breakdowns, or a sudden job loss.
Whether you want to do a master’s degree or want to send your child to a prestigious school, you need to make substantial financial commitments. If you have savings and some lucrative investments, it will be easier to enrol for that degree or send your child to a prestigious school without incurring debt.
Minimising Financial Risks
If you have substantial savings and investments, you can take financial risks without jeopardising your financial stability. For instance, if your net worth is above £1 million, you can invest in a high-risk venture without risking your home or other assets. Ultimately, this gives you flexibility when making financial decisions.
You may want to move to a new house, buy a car, renovate your home or buy furniture and electronics for your home in the future. These are things you can’t afford if you don’t have savings. Your income may not be sufficient to cover the costs, meaning that you may have to take expensive debt. However, these are things you can finance with savings and income from investments.
If you live in a flat, you probably aspire to own a home in the future. Buying a home is a substantial expense that costs thousands of pounds. If you are an average earner, the best chance of owning a home without attracting huge mortgage payments is through long term savings and investments.
Major Life Events
Everyone has special moments in their life that they want to cherish. It may be the 10th anniversary of your marriage or the day your daughter graduates from university. Having some savings put away somewhere helps because you wouldn’t want to borrow money to fund such events.
One of the most valued achievements in life is financial independence. Financial independence means that you have enough income from savings and investments to live the rest of your life without working. You may intend to turn your hobby into a business or career or have always wanted to travel. Financial independence means you do not have to rely on a salary and can do the things you love.
Work with Professionals
If you would like to make most of your savings, work with qualified financial advisers. They will provide financial advice on wealth management, family planning, estate planning, lifestyle planning, retirement planning and pensions.
Contact FH Manning to discuss how you can start saving or put your current savings to best use. FH Manning Financial Services has the experience and knowledge to help you maximise your endeavours and would be happy to talk with you at your earliest convenience. You can live chat with us on the website or make an appointment by emailing Claire at email@example.com.
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