We all have regular expenses which can often require a huge amount of investment over time. While some families are happy spending on credit cards when money is tight, or taking out a personal loan, others think ahead and create a saving plan so they don’t have to pay interest. Saving up for important large purchases makes you feel better about yourself, and helps to maintain a healthy family budget. Here is a list of five saving goals every family should have.
Education and School Trips
Even if your kids are only in primary school at the moment, you need to think about college and university. It is good to be able to help them out when they are starting off on their own. With the cost of a year at university nearing £10,000, it is understandable that ISAs and junior saving accounts are becoming increasingly popular in the United Kingdom.
If you know that there is a school trip coming up in the future, start saving up, so you don’t end up getting into debt.
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Your home is a place that gives you a sense of security and belonging. It needs looking after. From regular boiler and electrical checks to updating your tired-looking bathroom or kitchen, there is always something to do around the house. Instead of taking out a loan to do the necessary work, create a long term home improvement plan, budget and start saving. Get an estimated cost of each project by checking the price of materials, furniture, and make sure you compare self-storage companies to get a good idea of what services are available in your area.
Car MOT and Service
To keep your car maintenance costs down, it is important that you get your vehicle serviced regularly. MOT’s are compulsory, and the less you spend on your car during the year the more it will cost you to get your car through the test. Put some money aside for emergency repairs, especially if your car is over five years old and is not covered under the warranty.
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You might also want to save up for your holidays to avoid interest. While you can use your credit card for booking your hotels and flights to get the added protection, you might want to pay the money back into the account straight away to avoid charges.
Paying Off Debt
If you have outstanding credit card or loan balances, it is important that you make paying them off your priority. Create a saving plan of how much you want to pay back each month, and stick to it. If you want to reduce your mortgage balance, you can also check with your provider whether you are allowed to make extra payments without penalties. If you can, put your spare money towards paying off your debt faster.
Families need to save up for unexpected and planned expenses to stay on top of their finances. Create a saving plan and avoid interest charges and debt.