The job market is becoming increasingly competitive, house prices are rising and we are living longer than ever before; please take note of these 7 reasons to get a nest egg as early as possible. YOLO, the popular modern mantra that "you only live once" is encouraging us to throw caution to the wind, follow our dreams and make sure we have no regrets when we are older. I completely agree you only get one crack at life so it is important to start making decisions now that will set you up for the remainder of your life – this absolutely positively includes making financial decisions, something that is increasingly being overlooked. These 7 reasons to get a nest egg will emphasize the need to look at you bank balances now to make sure whatever the future brings, you will be ready for it.
Savings will set you up for the future and enable you to have the confidence to make life-changing decisions without financial restraints. Having a nest egg is at the cornerstone of achieving independence. When things get hard, or your life makes an unexpected twist, having a pot of money to turn to will mean you wont have to rely on friends and family or perhaps worse the banks. I myself have always joked that I was looking for a rich man to look after me in later life; but rather than seeking out a guy who is astute with his money, be independent yourself and save your own money. Independence later in life is one of my favourite reasons to get a nest egg as early as possible.
2. Rising House Prices
First time homebuyers are finding it increasingly harder to buy in the current property market. New buyers need to have a hefty deposit before banks will even consider setting up a mortgage agreement. This means whilst you are saving to get a house deposit you will be spending money renting accommodation; it’s a catch 22. Starting your savings as soon as possible means that when you are ready to look at housing options you won't be crippled by you finances.
Great news is we are living longer than ever before, yet with a progressively older population governments have less money to hand out as pensions. If you want to grow old gracefully, make sure that you will not be reliant on the state, and make small investments now for life after retirement.
4. Grey Days
There are certain things in life that we simply cannot plan for; redundancies, sickness and natural disasters. People who are successful in life have a financial plan for these ‘Grey Days.’ Life will always chuck obstacles at us, but having a nest egg will help absorb some of the friction. If you loose your job, knowing that you have savings to cover you for a 6 month period will substantially take away the pressure and stress of finding new work, and reduce your level of panic.
5. Live Your Dreams
Money can’t make you happy but it can help you achieve your goals, by providing access routes. Perhaps it is your life long ambition to see the Monaco Grand Prix and in the same stroke of destiny flights to Monaco are on special offer. This could be the chance you were waiting for to reach for your savings without worrying about any other financial commitments you have for the month. Essentially a nest egg affords you the opportunity to splash out on the things that really matter to you. Essentially it is a way of saving for things that you want before you have even actualized what they might be.
6. Power of Now
There will never be a good time to start building your nest egg, when you are young you have student fees, then there are holidays to pay for, that dream car or a new baby on the way. Stop putting off starting your savings and believe in the power of now. If you save even a little bit each day you will be on your way to financial security, but if you hesitate and wait to start saving you mostly likely find that tomorrow never comes. The earlier you start, the more money you will have when the time comes to raid your pot of gold.
7. For Everyone else
Even the most money savvy of us has not factored in the cost of helping other people. I am not suggesting you give financial relief to every man and his dog, but you may find yourself wanting to help your parents during old age or help a distressed close friend. Savings will give you the freedom to help the ones you love.
Words such as pension, nest egg or grey days do not make for cheerful discussions with the girls on a night out, but starting to think about your financial future will set you up for a lifetime. It is really important to get a nest egg as soon as possible, so no matter what life throws at you, you can smile right back and be ready. Have you started saving yet? What convinced you to start?