Want to start saving but not sure what you should be saving for? A few weeks ago I shared how you can save from any income and I thought the next personal finance topic should naturally be some major saving goals everyone should have. So to help you stay on track his week I’ll be sharing with you the saving goals you should have to bolster your saving plan.
When you’re thinking about saving, you should think about your goal. Answering the question of why you’re saving will help you stay the course.
Related: 6 Easy Ways To Save From Any Income
To decide what to write this week, the other day I asked my Instagram friends what they would like my next post to be and the majority voted for this post. Next week’s post will be about to date ideas so remember to check out the blog next Sunday!
Why discuss saving goals?
As you may have noticed saving is a pretty common word on this blog. Can you guess why? As I journey through adulthood personal finance has become very near and dear to me. Why? You may ask. Because I don’t think nearly enough is done to increase the financial literacy of the populace and those who know aren’t always the best at simplifying the information. These personal finance blog posts are my way of helping you become more financially aware and competent. With that said, here you have it.
Please note that this list may not be for everyone and is merely a guide for those who want to know what they should be saving towards.
Side note: the goals listed are in no particular order.
Saving Goal 1: Save For That House
First on the list is a house. A house is an asset. Fortunately, real estate value is growing in Jamaica. As a result, whatever you purchase your home for today is likely to double in a few years. But before you can purchase a home you need to start saving.
If your dream is to one day own your own home, the time to start saving is now. If you’re 21 and just landed your first job the time to start is now and if you’re 35 the time to start is still now. Wherever you are in life right now reading this it’s not too late to start saving for a home. But if I could tell my younger self I’d tell her to start saving for the bigger things sooner.
Get started saving as soon as you can. While if you are Jamaican and a National Housing Trust contributor you’re already in the running to get the best mortgage rate in the country, depending on the cost of your home you’ll need some more money to cover the cost. You’ll also need money for a deposit, closing costs, stamp duty fees and lawyer fees.
Also, your required deposit can be anywhere from 5-15% of the total cost of the home or land. Feel free to visit the NHT website for more details.
So start saving now, exercise the discipline and get closer to your goal. Remember, a house is an asset and real estate value is growing in Jamaica. What you purchase your home for today is likely to double in a few years.
Saving Goal 2: Get That Car
Let me first establish that a car is not an asset but it’s a convenient possession which can lead to greater opportunities. If you want to own a car it would be good to start saving for this too. It’s especially convenient in careers that require heavy travelling or if you live somewhere where public transportation is not the best.
Some of the costs associated with purchasing a car include; a deposit, processing fees, licensing and other government-related fees. You should also consider the cost to insure the vehicle.
Saving Goal 3: Retirement Anyone? Pension
I’m an advocate for the next four saving goals. Get a pension. I could just end that point here but I won’t. I’m sure you’d like to why you should have a pension account. And the answer is simply because you can’t work forever and if you’re not a business owner the day will come when you won’t be receiving a monthly salary. If this does happen you’ll need to be prepared so start saving towards your future.
In Jamaica, there are several perks to having a pension account. the interest rate is much higher than a typical savings account and the money saved is also exempt from taxes. If that’s not enough reason to start a pension account I don’t know what is. Speak with your banking solutions provider and find out how to get started achieving this saving goal.
Saving Goal 4: Life insurance
Just like the pension plan, the same applies here. I love that life insurance for young people in Jamaica is quite affordable. A life insurance policy can help offset the mortgage impact for your significant other or mortgage partner if you die. Set the minds of your loved ones at ease by preparing for the inevitable.
A life insurance policy with Sagicor allows you to add an emergency fund which you can use to save for emergencies or other short term goals. Having a life insurance policy as a saving goal is a favourite of mine because it gives me peace of mind to know that my family won’t suffer financially at the loss of me.
Saving Goal 5: Health Insurance
For some reason, health insurance is a lot pricier than life insurance and I could take a few guesses at why. Despite it being costly it’s invaluable. If you value your health as you should this is an area you should be saving for.
This saving goal is much like life insurance, it allows you to prepare for the worst. if you work with a company that provides health insurance make the best of it. Do your annual medical checks and find out how you get a policy if you were to ever move to a company where health insurance isn’t provided.
Saving Goal 6: Children’s College Fund
If you have children saving for their education is essential. Student loan debt is no joke. plan ahead and start saving for their schooling.
Thanks for reading! Have a great week!
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