There tends to be two mindsets for parents of today. Either you have to live in the moment and enjoy everyday like it’s your last or you have to always look towards the future. For our part, we say why not both? Why can’t you live a great life now while also planning for the future today? The answer is, you can. You just need to understand what impacts your future financial position and how to enjoy life now without putting it in jeopardy. This is always going to begin with, effective budgeting.
The first step is to make sure that you are indeed living on a budget. You must do what you can to fit everything into your budget while still saving a little each month. The savings aren’t to be spent. They go directly into a high interest account and you should leave them alone for the foreseeable future. This is your level one savings. That means they shouldn’t even be touched for financial emergencies.
Level two savings are the money you have left after the first lot of savings and also the bills that you have to pay each month. If you’re getting towards quite low levels of money now, don’t worry. It’s understandable to be in this position, and many people struggle with budgeting at first. You can split the level two savings between what you want to buy and what you might need to buy. Divide it in half and only touch one half in a financial emergency, like for instance buying a new boiler for the home.
Thinking About The Future
Hopefully, with the first level of savings, you will already have some money for the future. You might also be able to add to this through a good pension scheme. Shop around for the best one that you can find. However do be aware that it’s not just about saving money. It’s also about planning for the unexpected like a death in the family. This article: Is Life Insurance a Life or Death Matter? Provides context into what we’re talking about here. It suggests that you should always be preparing for the worst to protect the future of your family. You do need to consider the possibility that you might not be around forever and life insurance will help alleviate your worries here.
If the second level of savings we mentioned wasn’t as much as you hoped, there’s an easy fix. You just need to make sure that you are earning a second income. Many financial experts advise that everyone works towards adding a second income to boost their livelihood. This will give you the extra cash you need to enjoy life now while still being fully prepared for the future. It’s not always easy to set up a second income, but there are plenty of options here to consider. For instance, you can think about selling products online to boost your finances.
We hope this advice helps you enjoy life now while still getting ready for the future.