If You Aren’t Saving for These 7 Things, You Will Regret It

If You Aren’t Saving for These 7 Things, You Will Regret It

Andrew Lisa  Thu, July 20, 2023

Whether they do it or not, everyone knows they’re supposed to save money. But it’s easier to squirrel away cash when you know what you’re saving it for. The terms “savings” and even “emergency fund” are too broad to count as achievable goals. The trick is to segment your savings targets into individual must-have pots of money on the side.

These are the things to save for today so you’re not stuck wishing you had tomorrow.

Vacations — Or Your Little Luxury of Choice  First, focus on the truly important stuff and dedicate at least some of your savings to the things that make life worth living.

“Life’s milestones are not all practical and responsible,” said Samantha Hawrylack, a personal finance expert, retirement mentor and co-founder of the personal finance site How To FIRE. “Vacations are also important and should be saved for, but it’s better to wait a few years until your vacation fund is fully funded rather than going into debt for an expensive tropical holiday today.”

If trips to the beach aren’t your thing, save for dinners out, renting a sports car for a weekend or whatever makes you feel alive.

Bouts of Unemployment

While vacations are vital to life quality, you’ll regret taking one before you save enough to survive the involuntary vacation from work that might be just around the corner.

“Navigating through periods of unemployment can be a daunting experience,” said Tim Schmidt, founder of IRA Investing. “I remember a time when I had to close down one of my early businesses due to market changes. However, having a safety net made the transition less stressful and allowed me to bounce back quicker than I’d have done otherwise.”

Retirement

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