If you are thinking of starting a family or feel that there is a chance that you will have one in the future then you may wonder whether it is a good idea to save up some money towards it. This is something that some people do but others do not and you may wonder whether it is a good idea for you to do.
Advantages of Saving Up
- Saving up money can be really handy in lots of situations. Having a bit of money to fall back on can be really useful and it is a good feeling to know that it is there when you need it. Even if you do not end up having a family, having the money there will always be handy.
- When you have a family there will be a lot of extra expenses. Not only will you need to buy lots of things but one of you may need to give up work or you may need to pay for childcare and you will need to find the money for this as well.
- Once you have a family it will be much more difficult to save up. So even if you manage to pay for everything you need once you have a family, you will possibly not have the opportunity to have any extra money to put aside. It is always nice to have a bit of money behind you, in case you need to buy something in an emergency or you lose your job and need some money to live off.
Disadvantages of Saving Up
- If you have any debt, then it could be better to repay this rather than save money. This is because you will be paying interest on the debt. This can add up to a lot of money and so it is worth thinking about whether paying this off first might be a good idea. It is good to think about how much the loan will cost and how much interest you make on the savings and which will be better to do. Calculate the cost of the loan in total and think about how much money you will save if you pay it off, you can ask the lender how much the costs will be if you are not sure. You will also need to check whether there are any fees for repaying the loan early. Sometimes there can be a significant cost and sometimes just a small one or nothing at all such as these instant loans and it is well worth checking this out.
- Sometimes it might be a good idea to buy items rather than save up. Not only can this help your local economy if you shop locally or the economy as a whole, but it can also allow you to build up your home before you have a family. So, if you buy white goods, furniture, decorate it or even get a mortgage and buy your own place, this will mean that you are all set up for when you have a family. Hopefully you will not need to replace these items while the family are growing up and try to find the money then.
- Savings tend not to attract very much interest. This means that you will have money sitting in the bank possibly decreasing in value as it is possible that inflation may be higher than the interest rate. However, you may be able to find a better rate of interest if you use a notice account of fixed rate bond, so it can be worth looking out for those to see if they are worth using.