News

I’m a financial planner, and I find people always forget to save money for the same 3 things


saving money summer

Eric Roberge is a financial planner who primarily works with professionals in their 30s.
He finds people tend to forget to save for expenses that occur in the next 10 to 15 years and for all the things you have to buy after buying a new home.
Even his most proficient clients forget to save for regular expenses with irregular due dates, like subscriptions or home maintenance services.
See Business Insider’s picks for the best high-yield savings accounts »

Ever get that feeling you’re forgetting something? Something big and important … and potentially expensive that you should have started saving for a while ago?

You might if you’re forgetting to save for one of these big items that many people tend to not think about, until it’s time to make a payment and they don’t have the cash on hand to do so.

Don’t let that happen to you! Take this as a quick reminder of three major things that most people always forget to save for:

1. Mid-term goals

While it’s a really big goal that will take time to reach, you know you need to save for retirement now (even if it’s 20 or 30 years down the road). The need to save up for things that you’ll want in the next few months or years probably seems obvious, too.

But what almost everyone forgets to account for are the years in between the near future and the very long term.

It’s easy to forget to save for what you might want to do or use your money on in 10 to 15 years because it’s really hard to imagine what life will look like in this mid-term period. The thing is, you don’t need to know exactly what your 10-year goals are, or what your lifestyle will be 15 years from now.

It’s enough to know that you will likely have some kind of goal and want to use your money to fund some kind of lifestyle … so you better start saving for that now!

As you get more clarity, you can add more detail to your plan. For now, just make sure you’re putting something away that you can use in the mid-term.

2. Everything you have to buy after you buy a new house

You know you have to save not just for a down payment on the home you want to buy, but also for the closing costs that you need to pay when taking out a mortgage. What you might forget, however, is everything you probably need to buy after you close and get the keys to your new place.

If you’re moving from a small starter home or apartment into a larger home, you should budget for things like furnishings and supplies. That includes more furniture if you have some extra rooms that you didn’t have before … but it might also include items you never needed before, like a lawnmower …read more

Source:: Business Insider

      

(Visited 5 times, 1 visits today)

Leave a Reply

Your email address will not be published. Required fields are marked *