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It’s important to begin planning and saving for future before the future arrives. If you begin saving for retirement a few years before you want to retire, there isn’t any way to save as much as you need. Whether you know exactly what you want or not, preparing for the possibilities is wise. By planning you can avoid going into debt. Here are five ideas for planning for your financial future.

Don’t wait until later to begin saving

The sooner you begin saving the better off you will be down the road when you’re ready to make a big purchase, travel, or retire. You don’t need to have a plan in order to begin saving. Building a nest egg should not be considered a choice, but a requirement in life. Life is full of unexpected moments that come with hefty expenses, so knowing that you have the money set aside to pay for a medical expense or a new roof will help you avoid additional stress in those situations. Saving money doesn’t mean cutting out fun. You can find a way enjoy both. You can learn more about retirement savings and find out if you’re on the right path at the AARP website with this calculator.

Understand what buying a home means to your finances

A home is the biggest purchase that most people make in their lives, but it’s not something you want to rush into. When you do decide to buy a home, putting down the largest down-payment you can is one of the smartest choices that you can make, but you don’t want to drain your entire savings and retirement to do so. There’s also more than just the cost of the house to consider. There may be appliances or repairs needed in addition to an inspection, insurance, and property taxes. Before you jump into home-ownership it’s always a good idea to speak to the experts such as those at Freedom Mortgage.

Learn how to budget

Budgeting is an important part of financial security. Being able to save as much as possible means not spending every last dime of your paycheck. This may be difficult if you’re used to having certain things that you don’t want to give up. You may have grown up in a household that indulges in a lot of television. Once you’re out on your own it may seem like a basic expense, but if you can’t afford to save any money because you’re spending it on various channel packages, you have to rethink this purchase. Budgeting for monthly expenses such as groceries will help you save money in the long run. Learning how to meal plan and shop smart is a helpful skill that anyone can learn. It’s also important to learn the difference between needs and wants. Food is a necessity, but steak two nights a week might be an indulgence. Owning your favourite television show on DVD is a want not a need. You may be able to watch it on television still or borrow it from the library when you want to see it again.

Plan for marriage and kids

If you are interested in marriage and children, financial planning is important. There are not just foreseen expenses that will come up, but unexpected ones as well. If you are used to being a two-income household and your spouse loses his job, you will suddenly be without that extra income until he finds another. This could takes weeks or months. It’s recommended that you have at least eight months of expenses saved up in case this happens. Another situation to consider is what will happen when children come along. Will both parents continue working or will one take some time off? Children are an added expense and require much thought and planning. Having children means buying diapers, clothes, and eventually more food. You will have to adjust your budget when children come along.

Find ways to make your money work for you

Saving money is a great start, but there are ways that you can have your money grow over time. You can put some of your money into long-term saving accounts that may give you a slightly more interest. If you’ve never invested your money before, you will want to learn more about it before jumping in. You can do so at https://www.usa.gov/saving-investing

You should also look into special accounts that might be available for your children or their education. Some institutions such as banks or workplaces will match your contributions up to a certain amount.

Planning the future might not seem like a big deal right now, but when you look ahead to all possibilities and even dreams you have for your life it makes a lot of sense to start saving.

Madeleine Murray is interested in saving money wherever possible, as well as making it! She writes on various personal finance topics such as savings, debt repayment, investing etc for a variety of blogs.