Easter has passed and we have had our fill of chocolate eggs, but have you thought about your nest egg? A nest egg is a sum of money saved for your future, which makes it good idea to have one building up. It’s also a good idea to know what your nest egg is for. Having a long term goal and plan for your money can help to keep you on track with your savings and less likely to dip into the savings for unnecessarily.
Some ideas worth saving for:
Let’s start small-ish – Holiday or home improvement
Have your mind set on a brand new kitchen or do you really need a long holiday somewhere tropical? Wondering how you can pull that off? Well saving a small nest egg for home improvements or the dream holiday is a great idea. Think about when you want to travel or build and then make a plan of saving, so you know how long and how much you need to save. Also try giving your nest egg a name. It might sound silly but having a ‘fiesta fund’ or a ‘Karen’s dream kitchen’ nest egg really helps to make it more real, you know what you’re saving for and less likely to stray from saving.
Here’s the biggie – Buying a house
With house prices increasing and rents not rapidly decreasing many people are trying to save as much and as fast as they can to buy their own home. Saving for a house deposit is a typical use for a nest egg. Knowing exactly how much you can save each month is the key to planning, and any time you can top up your savings will all be benefit and take you one step closer to your new home!
Think long term – Rainy day fund
Do you have anything to fall back on in an emergency? Having a emergency nest egg is one of those things that will really make you feel ‘safer’ for life’s unplanned moments How much you need is really up to you, every situation is different, but a general guide is one to three months salary.