The best way to prepare for the future is by reserving now. The good news is that you don’t need to be wealthy or earn a high income to be successful. Even if you have limited resources currently, there are still many ways you can take steps today to give you the opportunity for a better future.
To help you achieve your long-term financial goals, I have explained how you can save for your education, home ownership, and starting a business.
Saving for home ownership is one of the best investments for your money. It is always a good thing to own a home, and you can either buy in cash or pay down payments if it is a long-term plan. However, before you own a home, you should calculate how much money you will need to save to buy your dream home.
In most cases, most financial institutions require you to deposit a down payment of at least 3%-20% of the home value. On average, first-time buyers are required to deposit at least a 6% down payment of the total cost of the home. Besides this, you must also consider the closing costs and other hidden fees ranging from 3-5% of the home’s market price.
So, before you buy a home, save 20-50% of your money in a savings account in a financial institution such as the Openwork Partnership Savings & Investments. You can either keep in a money market account or high-yield savings, which will earn you interest rates.
If you are working in a corporation or own a business, you will feel the urge to pursue higher education. You may even want to start a new course or apprenticeship. Education is expensive, and it can cause difficulty paying all your semesters in cash without borrowing.
But worry not, as most financial institutions and insurance companies offer attractive education insurance packages you can pay for every month, provided you are permanently employed or have a good monthly cash flow. Therefore, you can open an education savings account for yourself or your children.
The good thing is that some financial institutions, such as the Open Partnership Savings & Investments, have Junior ISAs that work the same way as the regular ISA. You can save for your kids’ education in this account at low limits annually. Moreover, the institution also allows you to keep keep in a cash account or a shares account.
Starting A Business
Starting a business can only become possible if you have funds to open and run the business. In most cases, you need to fund your business for six to twelve months before you start earning profits. Yet, the ROI can even take longer than you expect. Besides, you need money to buy furniture and pay for business space or office, depending on the type of business you want to start. You may also need one or a few employees to help you run your business, depending on the size.
But where do you get the money to fund your business? Well, you can start saving early into a business account in a financial institution such as the Openwork Partnership Savings & Investments. You can either keep it in the shares account, where you can sign for a loan, which is payable in monthly installments. Most institutions offer such loans with favorable interest rates that enable borrowers to pay comfortably.
That said, as you start your savings journey, you have to set up a budget that will see you saving at least 20-30% of your income. You will also have to ask your bank to reduce your credit card debt or request them to give you a lower interest rate. Remember, savings also call you to eliminate unnecessary spending on upcoming technology items such as the latest gadgets in the market and fashion.