Lifestyle

Putting Money Aside: It May Be Boring, But It’s A Good Idea – Here’s Why

Putting Money Aside: It May Be Boring, But It’s A Good Idea – Here’s Why

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Budgeting is something that we all have to do as we get older. We have money, and we have things we need. The key, of course, is to have money left over after we have found and bought the things we need. And without budgeting, this is something that can easily not happen. But more than that, we don’t need only to budget for the immediately obvious. It is also key to make sure we put some aside.

Savings are something that has become a topic of controversy in recent years. As the world recovers from a financial crisis, many banks have cut interest rates in order to try and stimulate an economy. When people with savings put by see this, it can feel like a waste of time to save. Equally, the ability to be flexible sometimes gets prioritized over a routine of putting money away each month.

The thing that needs to be remembered is that savings aren’t just nice to have. Sometimes they can be essential. For the following reasons, it’s something you should at least consider.

Future Retail Purchases: Because Cash May Be King

From time to time we all plump for a big ticket purchase for our homes. It may be a new TV to take advantage of new innovations in technology. It might be new furniture to replace a suite that has seen better days. It could be a new car. In many cases, we will put these purchases on finance. The drawback to doing so is that this can give us an ongoing commitment that eats into disposable income. Being able to make a cash purchase means you own it outright.

Household Contingency Fund: Because Things Will Go Wrong

The feeling of accomplishment when you get all bills paid and balance the household budget never fades. Sometimes, though, it gets very swiftly tarnished by having to pay out for repairs. It’s frustrating to feel like you’ve cleared the board for the month and then a crisis strikes. It may be something terrible like a fire, or basic like a silverfish infestation. Whatever the case, it will cost money to get it sorted out, and having a contingency fund will be essential.

Rainy Day Fund: Because Sometimes You Want A Treat

Having money set aside for a rainy day is something that has been passed down through the ages. It doesn’t need to be an actual rainy day, of course. It may simply be that you want to give yourself or your family a little treat. This is a fund you can dip into for a holiday somewhere nice or a special party. Using money that you have put aside, you can give yourself and your family something nice.

Having a bit of extra money at the end of a month might tempt you to spend it as a little reward. But putting it in the bank to keep it for when you may really need it is something you won’t regret doing. Even if it feels hard at the time.

Naomi Isted
Editor in Chief, Naomi Isted is known as The Ultimate Lifestylist to her readers and viewers. She is a TV Presenter and Columnist. Ranked in the Top 100 LFW Social Media Influencers AW14 & SS15, Brand Ambassador for Pears Soap UK. Her Celebrity beauty TV Series currently airs to 27million homes on Physique TV in UAE, previously on Wedding TV in the UK. She brings fashion and beauty advice to her readers and viewers on a daily basis. She is Fashion and Beauty Columnist for Herald Scotland and has a Fashion and Beauty Bridal Blog for HELLO. She can usually be found attending celebrity fashion and beauty events in and around London and sharing the latest fashion and beauty trends with her readers.

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