Tips To Balance Family Savings Goals And Meet Your Priorities

Very often when we save for our family, we do it without taking the goal and priorities into consideration. But to cover our needs and meet our priorities, we must have a proper plan in place. 

When it comes to saving for our family, it become difficult to figure out how much we need to save. Besides fulfilling the daily needs of your family like clothing, accommodation, and daily meals, you also need to have sufficient funds to meet different other goals such as higher education for your children, family holiday and more. 

You may have adequate funds to meet your short-term expenses. But what about down payment for home, retirement and others? You’ll need to set goals to fulfill those priorities. 

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 Set aside money for emergencies:

No one know what’ll happen in the future: an accident, an illness, an unforeseen layoff. That is why you must be prepared for the unexpected by setting aside money for emergencies. Experts say that emergency funds for households cover 6-9 months’ worth of expenses. However, if you or your other-half are self-employed or earning is unforeseen, think about saving even more. 

Savings for car, house or higher education:

Saving goals are not refrained to fulfilling everyday needs. Requirements increases as family expands. This is the ideal time to consider about long-term goals such as purchasing a home, car or saving for your kid’s higher study. If you are thinking about purchasing a new house in the next few years, then you should aim for savings which can be used for the down payments of the home. 

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 Retirement goals:

Proper planning is essential if you want to lead a happy retired life. According to expert financial planners, retirement planning must be on a priority at an early age. When you are young, you usually have an aggressive savings approach, which can be switched to conservative savings option afterward once you are 5 years away from the retirement time. 

Essential & non-essential items:

To make sure that have enough savings for your household, you must keep an eye on your spending. To get started on the right note, ensure you split your spending into essential & non-essential items. You’ll know how much cash goes towards purchasing unwanted stuff, which can be changed to savings option. 

Having a budget planned each month aid you in paying off your debts on time, saving for your retirement and also set priorities for your expenditures. We usually plan our expenditures first and them save the outstanding. To be able to meet your monetary goals, it’s essential to set aside for savings first and then use the outstanding to pay the expenses. 


Disclaimer: The information in this commentary is for informational purposes only and not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product. ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI

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