If there’s one thing this year has taught us, it’s that things can change quickly. While this pandemic may or may not have had a direct impact on your financial situation, you should always try to be as prepared as possible. If you are in the fortunate position to not have an immediate need to save money this blog is for you. We have a few tips to help you save money without any specific financial goals.
Things to Consider
Putting money away when you don’t have any immediate need for it can be a little difficult. With this in mind, we urge you to think a little into the future. Is there a trip you want to take? A new gadget coming out that you’d like to buy? An artist you’d like to support? Organizing your saving habits around these smaller things can help prepare you for larger and better savings habits.
Things You Should Always be Saving For
There are a few things we recommend you always have money set aside for. Hopefully, this list will kickstart your savings habit.
Emergency funds are a crucial part of your financial situation. We know that emergencies happen when you least expect them: a flat tire, a broken appliance, or even a layoff. Having a solid emergency fund can help ease the burden of life’s unexpected events. A rule of thumb is to have at least 3 months’ worth of expenses saved up.
Once you’ve taken care of any emergencies, you should think about retirement. The earlier you start, the more money you’ll have to retire on. The type of retirement account you have will depend on your current situation, location, or place of employment. However, Eagle Federal does offer IRAs with great rates and options if you’d like to save with us.
Even if you don’t have children, saving for education should be important. Investing in learning a new hobby or skill could provide you with extra income or an advance in your career. If you do have children, setting money aside for higher learning is a great way to help set your family up for financial success.
Whenever we can safely travel, it would be nice to get away on a beautiful vacation. It would be even nicer to have money set aside for that vacation. If you’re working hard, you should have a little money set aside so you can relax as well.
Most things we would like to pursue in life require money. Even if you don’t have any immediate need for saving or setting money aside, it’s a great practice to start. This habit can help save you future stress and provide a cushion should your financial situation change.