We are all tightening our belts a bit and trying to get into a savings habit. But often we make the mistake of putting a stop to all spending thinking we are doing the right thing.
There are essential things, that if we don’t spend money on them, could end up costing us thousands.
- Home improvements – doing home improvements increases the value of your home and regular maintenance will prevent major repairs e.g. not attending to a leaking roof may cause major water damage down the line, not varnishing wood patios may lead to rot and safety hazards, a crack in the wall if left unattended could lead to structural damage.
- Your personal health – your health is important. Do not put off check-ups as any underlying conditions could be exacerbated if not treated properly. If you are in poor health because you want to save money, it could affect your ability to earn a salary. Your health is your biggest earning asset.
- Retirement savings – putting off saving for retirement is one of the biggest mistakes anyone can make. The longer you wait, the more chance there is that you would not be able to lead the same lifestyle as you do now, and you would have to seriously downsize to survive.
- Money saving gadgets – Any gadgets or appliances that can help save costs over time is welcome. These costs add up and you would be surprised at how much it is e.g. energy efficient appliances use less electricity, solar power will reduce electrical consumption, hybrid vehicles will save on fuel costs.
- Rest and Relaxation – Modern life is stressful. Between juggling a career, a family and worrying about finances, a person could show a decline in work performance, suffer from depression, or even have a relationship fail e.g. a gym membership seems like an unnecessary expense, but provides an outlet to reduce stress and makes for a healthier body. To each his own, perhaps your stress reliever is drawing, decoupage or Tai chi. Find your stress dissolver.
- Repairs and maintenance – Maintaining equipment on a regular basis will increase their lifespan and you can avoid the high cost of replacement e.g. regular car services, laptop overhaul, lawnmower service.*
Saving is very important, but don’t fall into the savings trap and avoid these aspects. It could be a very costly mistake when you least expect it. It could also be a major damper on your savings mindset and motivation.
Your deVere adviser can help you with your savings budget. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.