Ah, youth. When day drinking without a hangover was almost guaranteed, and eating a slice of white bread didn’t leave you feeling bloated. Your 20s are all about the good times and living your life without a care in the world, which is exactly how it should be. But it doesn’t hurt to have a little foresight and plan for your future.
Getting into the habit of saving isn’t always easy, but your future self will be thanking you when those rainy days come knocking. Creating specific goals and objectives when it comes to saving money can make this a lot easier. While you may have a specific idea on what you’d like to put your money towards, here are a few more that may tickle your fancy.
Your Future Self
We’ve all been there, splurging on those dope-looking pairs of sneakers, only to regret it tomorrow. Saving for your future self should be your top priority and should be altered to suit your needs. It’s a big ask, but think about where you see yourself in the future and what that looks like. Are you retired and relaxing on a beach? Or have you just purchased your fifth property? Create savings goals that align with this future version of yourself. Whether that looks like a retirement annuity or a simple investment plan is up to you, but go with one that suits your financial goals.
This is a biggie, and I’m sure we’ve all had a similar lecture from our parents. Life can’t help but sneak up on you sometimes, a difficult lesson that we’ve learned from the COVID pandemic. Make sure that you’re ready to laugh in life’s face when the proverbial poop hits the fan by flashing some cash at it. You can be as aggressive with adding money to your emergency fund as you like but make sure that you’re able to build up some emergency savings that will last you for a few months – if possible.
Saving for a House
Buying a home is a major investment and if owning your own property in the far future is on your bucket list, it doesn’t hurt to start early. There are countless benefits to having a large deposit when you finally have the chance to purchase your dream home, including how it will benefit you financially in the long term. This ensures that the monthly loan repayments are lower and easier on your pocket.
There’s nothing that gets the heart racing and the blood flowing more than hopping on a plane and jetting off to your favourite destination. Whether it’s a quick trip to Durban for a little R&R or a luxurious vacation to Bali, setting money aside each month to indulge your wanderlust is a fantastic idea and savings goal that everyone should get behind. This is a much better alternative to grabbing your credit card and swiping away before having to pay everything back with interest. Think about where you’d like to head next, create a travel plan and budget that suits you, and add a bit to your dedicated savings account each month.
Having fun doesn’t only have to be drinking an expensive bottle of champagne or indulging in a three-course meal, but anything that lights a fire within you. Whether that’s spending some extra money on golf lessons or buying that expensive paint you’ve had your eye on, setting aside a few extra coins each month to spend on the things you love doing is a great way to spend your money.