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10 Things You Should Be Saving For Just In Case

10 Things You Should Be Saving For Just In Case

You know you should be saving your money, but do you know why? Here are ten things you should be saving for, just in case. Don’t be caught off guard! Knowing what you need money for will make it easier for you to save.

1. Paying off debt.

No one wants to be in debt their entire life! Sure, that credit card was supposed to just be for emergencies, but you started using it here and there, and then you realized you couldn’t pay the monthly bill. That’s ok — after all, that’s what credit cards are for. But don’t let your debt accumulate. Interest rates will make your fees skyrocket, and before you know it, the amount you owe will seem impossible to pay off. Instead, pay off a little per month. Try to meet more than the minimum due, if you can fit it into your budget.

2. Medical emergencies.

You’re healthy as a horse, right? Still, you never know when the flu is going to knock you out, or when you’ll get in a car wreck and have hospital bills to pay. You don’t want an unexpected illness or hospital stay to wipe out your savings, and you don’t want to be in debt or struggle to make ends meet just because of a medical problem.

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3. Periods of unemployment.

Financial advisors recommend having enough money saved to live for three to six months without any additional income. Go ahead and figure up your monthly expenses, multiply them times six, and see how much of a cushion you need to have. Are you close? If not, go ahead and add a bit into your current monthly savings that will allow you to save up this money. If you can, save even more — the more money you have in savings, the longer you’ll be able to live without a job. This means you won’t have extra financial stress when you’re unemployed, and can take your time to find the job that fits you best. It’ll be worth it so you won’t find yourself struggling if you unexpectedly lose your job!

4. Retirement.

When you’re in your twenties and even early thirties, retirement seems far away. In reality, it’s never too early to start saving for retirement. Think about it – this is money you’re putting aside so you can live more comfortably later! You won’t have to depend on Social Security income because you’ll have your own money put aside.

5. Buying a car.

It’s not too expensive to buy a car because you don’t have to pay for it all at once (but wouldn’t it be cool to buy a car in cash?), but the down payment and monthly bills can add up. If you don’t have it figured into your budget, then buying a car might set you off course. You should have money in savings that could be used for a downpayment and monthly payments on a car, just in case something happens to your current ride.

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6. Purchasing a home.

Or an apartment, or a condo, or a farm! Sooner or later, you’ll probably find yourself ready to settle down and have a stable living situation, instead of renting and moving every few years. You don’t have to pay for a home flat out, of course, but you’ll need a considerable amount for a downpayment. Also think about how you’ll need to have good credit and savings in order to get a loan.

7. Home and car insurance and repairs.

Once you’ve saved up for that car and that home, you’ll have a lot of additional expenses! You’ll need car insurance, home insurance, you’ll have to pay property taxes depending on where you live. Your car will need tune-ups and your house will need repairs and maintenance. You’ll need money in your savings account so your water heater busting or your muffler falling off won’t leave you frantically searching for a cheap, easy solution.

8. Education.

There may come a time in your life when you’ll want to go back to school and get a master’s degree or a special certificate. As a working adult, it’s possible to get tuition assistance, but not guaranteed. Instead of having to decide between going back to school or staying in the same dead-end job, wouldn’t it be great to know you have the ability to pay for your education? And if you never go back to school, this money can go to your children’s college funds!

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9. Investment properties.

Whether you already have your own house or not, having an investment property is never a bad idea. It could be a rental house for students near the university, or a beach house you rent out in Florida – these properties will provide income with minimal effort. Sure, you’ll be responsible for repairs and will have to screen your tenants to ensure they won’t damage the property and leave, but if you charge a bit more than what you have to pay each month for the mortgage and upkeep, you’ll make a nice profit!

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    10. Caring for elderly family members.

    You don’t want to think about it, but there may come a time in your life where you’ll have to take care of elderly family members. Grandparents, aging parents, aunts, uncles — who knows who will need help as they get older? You don’t want to be in the helpless position of turning down those who need you, so make sure you have savings to help them out. This could include groceries, living expenses, medical bills, in-home nurses or even helping move them to an assisted living home. These transitions are going to be difficult enough emotionally; you might as well try to lighten the load financially.

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    Featured photo credit: 401 (K) 2013 via flickr.com

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    Last Updated on April 28, 2020

    9 Millionaire Success Habits That Will Inspire Your Life

    9 Millionaire Success Habits That Will Inspire Your Life

    As technology evolves and information becomes more accessible, it has also become more challenging to define success. A lot of people are trapped in the rat race while trying to discover the actual formula for success.

    You could become overwhelmed with what tools, techniques or philosophies to imbibe while trying to get tips over the internet. At every click and turn, there are ‘how-tos and quick-fix’ on how to become successful overnight. You will find several courses, articles, videos and books on how to achieve financial success.

    But what if I tell you it doesn’t have to be complicated as people made it out to be? What if you could achieve success by merely following these 9 millionaire success habits?

    1. Read for Personal Development

    A daily habit I have discovered millionaires share in common is reading. For instance, if you are an entrepreneur, you need to read to become an efficient leader and a productive business owner. Reading helps you to grow and learn without going to a business school.

    A research conducted by Thomas Crowley indicates about 85% of self-made millionaires read at least two or more books each month. [1] Warren Buffett is one of these examples. He spends 80% of his day reading. In the early days of his investment career, he would read 600 to 1000 pages in a single day.

    While millionaires sometimes read for pleasure, they also learn to improve themselves. They read topics on leadership, how-tos, self-help, biographies, lifehacks and also follow current events.

    Here’re some recommendations for you: 25 Best Self Improvement Books to Read No Matter How Old You Are

    2. Establish Multiple Sources of Income

    Another success habit I noticed about successful people is that they don’t depend on a single income source. Every millionaire possesses multiple sources of income. This helps them to manage economic challenges and also make more money.

    They are passive income addicts. They earn interests from loans, rental income from real estate, royalties from intellectual properties, dividends from investments. They also launch a side business or run a website or sell information products.

    How income is made either passively or actively is what separates the successful from the wannabes. They are always learning ways to build multiple streams of income.

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    3. Live on a Stipulated Monthly Budget

    An average millionaire does not believe in luck and jackpot. They take the time to understand cash flow-income and expenses. Based on this, they establish a monthly budget and religiously stick to it.

    The essence of the budget is to minimize unnecessary expenses. This will help you gain complete control of your financial life. Budgeting helps you to avoid overspending to achieve your financial goals. Here’re some tips to help you stuck to your budget: 32 Hacks for Sticking to Your Budget

    4. Manage and Maximize Money

    The most significant education for a millionaire is financial intelligence. Nobody attains financial freedom without gaining financial intelligence. This is the more reason millionaire, regardless of their income, keep their knowledge about tax strategies updated.

    They always seek to reduce their tax bills. One approach they employ is by living or incorporating their business in states with no income tax.

    Do you know that about 60 companies paid $0 legally in the 2018 tax year? Some of these companies that ‘avoided'(note: not evaded) federal income tax include Chevron, Amazon, Halliburton, General Motors, Delta. Their US income was totaled at $79 billion with an effective tax rate of -5%.

    What’s the deal? They got a tax refund.

    How do they accomplish these?

    An ITEP report indicated that they have the culture of throwing huge sums at tax experts who assist them in discovering creative, as well as convoluted means of paying little tax as much as possible.[2]

    5. Avoid Debt

    Another habit that separates the millionaires from the rest of the world is how they manage debt.

    They don’t live an extravagant lifestyle; instead, they only buy what they need and can pay for. They do not book hotels and flights by using their credit cards to pay for them.

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    They are conscious of the interest rates even when they use credits cards or take loans. If possible, they try to pay with cash because of its zero percent interest rate.

    6. Set Daily Goals

    It does not matter if they are setting up a business, a career, or financial projections; they have the success habit of setting short term goals. They plan daily and weekly goals to generate momentum in achieving their long-term goals.

    Ensure you prioritize when setting daily goals. This will help you to achieve the most important to-dos on your list.

    Setting priorities will help you to focus on highly rewarding activities. If you desire financial freedom, it is wise to pursue activities that earn you thousands of dollars rather than hundreds of dollars.

    7. Don’t Act Rich

    The goal is not to act rich but to be productive. Interestingly, Thomas Stanley buttressed in his book that for the most prestige brands of cars, about 86% percent are toys of the non-millionaires. While most believe that people with huge fortunes tend to drive exotic cars, in reality the largest consumers of pricey cars are aspiring millionaires.[3]

    According to findings by Experian Automotive Researchers, 61% of individuals who earn $250,000 or more rarely buy luxury brands. Instead, they buy Hondas, Toyotas, and Fords like the rest of the world. The reason is they are not ready to spend money on premium cars that tend to drop in value in a couple of years as it would cost money. Millionaires invest in assets that appreciate.[4]

    8. Own or Buy Businesses

    In Robert Kiyosaki’s cashflow quadrant, he divided how you earn income into four quadrants. The E and the S quadrants take the left position while the B and the I are on the right side. According to Robert, it is possible to be on all quadrants, but the millionaires are not.[5]

    • E stands for employee – they work for others
    • S stands for self-employed – they work for themselves
    • B stands for a Business owner- employees work for them (500 or more employees)
    • I stand for Investors – Money work for them like Warren Buffet.

    Your goal is to move from the left quadrant to the right quadrants where you own big businesses or make money work for you.

    It is possible to become financially successful by pursuing what you love. For instance, if you love writing, aspire to be the best seller. Wealth and passion work together.

    Check out How to Start a Small Business with Little to No Money for tips.

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    9. Avoid Get-Rich-Quick Scheme

    A millionaire holds patience as an essential virtue. It takes patience to become successful, not only in finance but in every aspect of life. While it is possible to become financially successful at an early age, most millionaires hit it at age 50. They live a moderate life, invest in their future and retire rich.

    Bonus: How to Develop the Millionaire Success Habits?

    Having learned these habits, the next question is,

    How can I develop the Millionaire Success habits?

    Here are six values you will need to develop:

    Establish Your Life Vision

    You need to be clear about what you want in life to set yourself for a life of success. Your vision has to go beyond becoming a millionaire to understanding why you want to become one. Any great entrepreneur you will ever find has a clear vision and an established mission.

    Understanding why you are doing what you do will drive you to become the kind of successful person you want to be.

    Make Your Passion a Profession

    When your passion becomes your profession, work becomes pleasurable. Loving what you do enables money to flow to you and through you.

    So what’s going to be? Wake up every morning by speaking positive words into your work, love what you do, and focus on the work that brings you joy.

    Take a look at this article and learn how to make it happen: 5 Steps To Turn Your Passion Into A Career

    Focus on Solution

    Focusing on the solution means establishing the problem that you or your business address. This will help you focus on the solutions when others are faced with challenges.

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    A millionaire has a mindset that is fixed on the solution. He or she knows there’s a way out, and that every problem is an opportunity in disguise.

    Improve your problem solving skills with these tips: 6 Effective Ways to Enhance Your Problem Solving Skills

    Develop Your Leadership Skills

    Leadership skills are an asset that is indispensable if you want to develop a millionaire success habit. The more you hone your leadership skills, the more you will attract leaders who share your values.

    Be Growth-Focused

    Millionaire entrepreneurs prioritize self-improvement. Here’s how to achieve it:

    • Get a coach. Coaching will impact your life, and you will achieve peak performance in life and business when you have a life coach.
    • Be coachable. It is not enough to have a coach; you must be coachable. Sometimes, you need feedback and counsel to reposition your life and business. A coach has the wisdom and experience to counsel you from a higher perspective. The more you receive feedback and work on yourself, the more you become better at what you do and who you are.

    Flip Your Thought Pattern From Acting To Being

    It is not enough to have a millionaire success habit, you must also become a person of positive influence. This is how you can become significant. Bill Gates is not only rich; he is changing lives in Africa and different parts of the world.

    If you want to become successful, you must first be and think like a successful person. This is how resources you need can flow into your life.

    Here’s a final thought from me:

    It is not enough to do something to have something; success is about being someone who possesses what is needed to take positive and inspired actions.

    More Success Habits

    Featured photo credit: Austin Distel via unsplash.com

    Reference

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