Got some money saved away and are unsure of what to do with it? Perhaps you’re looking to invest for the future or put some away in a savings account for your child? Long-term savings plans are something that fewer people are prone to do nowadays, and that should change if wanting to work your way up to financial freedom.
For those looking to invest some of their capital, and put some money away for family members in preparation for the future, here are some long-term savings plan ideas for you and your family.
Humble beginnings
It may sound a little cliché, but planting the seed of money (and money-saving in general) in your child from a young age will give them a solid understanding and concept of spending and saving, and help them to appreciate both the value of individual items and what you do for them growing up. It’s true that putting away savings for your child, whether they be in the form of an account or even an investment, will be a great help for them in the future, but having sound knowledge of their finances and earning money is also an invaluable tool for success.
It is for this reason why you should think about how you can involve them in the savings process as much as possible, from getting them a piggy bank or money box at a young age to store their pocket money in, to opening them their own junior savings account to prepare for adulthood.
A tactile investment
Purchasing buy-to-let property is typically a long-term investment, but it can be a good thing to invest in for your children if you have the capital, as it will give them an incredible foothold in the property ladder when they come of age. Investing in a burgeoning area with potential for capital appreciation (or capital growth: The increasing value of your property’s worth) can mean that your initial investment cost will see a gradual increase in value over time. In off-plan development areas (projects where the investments are still in planning stages and construction) it can prove to be fruitful where the area is in demand.
The UK, in general, is set to see a house price increase in the coming years, so if you have a particular property or area in mind that you want to invest in then you shouldn’t feel restricted. However, there are without a doubt some areas that are better than others going forward in terms of rental returns and house price growth. Property investment company RW Invest are among those offering developments in northern cities such as Liverpool and Manchester, both of which have much more affordable prices and promise of higher returns than the equivalent destinations in London.
A rainy day funds
Making sure your family is secure is among the list of top priorities for many, and having a monetary cushion will allow you to live comfortably should any sudden payments block your path. Living from payday to payday can be a stressful endeavour that’s mentally taxing on those of us even without a family, and so once children and other dependents are thrown into the mix, the pressure can improve tenfold. If starting from scratch, to build up a level of security, sit down at the beginning of each month and figure out your outgoings and necessary payments. From there, no matter how small, try to put a small portion away. Before you know it, you’ll have a safety net built separately to your earnings, and it will help you to spend more freely without the worry of having nothing left in case of home troubles or emergencies.
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