The Expenses You Can’t Afford to Skip
Most of us spend a lot of time trying to make cutbacks. We’re always on the lookout for ways to save money or spend less. We try to find ways to get more for our money, and we hate spending more than we need to unless we feel it’s worth the added value.
The cost of living is rising all of the time and making cutbacks and sticking to budgets can be crucial to financial stability. Luckily there are plenty of places to make big savings. Simply switching service providers or cancelling contracts that we don’t need can save us a fortune.
But, there are also areas that you can’t afford to cut. Where you need to spend money to protect yourself, your family and your quality of life. Let’s take a look at some of them.
Food appears on both lists. You can easily make savings by buying cheaper ingredients, cooking in bulk and freezing meals. But, you still need to spend and spend well.
There have been a lot of stories in recent years about how unhealthy food is much cheaper than organic and healthier options. For the most part, this is true. But, for your health, it is worth spending more on fresh produce that is good for you. You can still save by buying individual ingredients and cooking meals from scratch and freezing leftovers.
Insurance is also an essential that you can’t afford to be without. Legally, you need car insurance to be on the road. But, what coverage you need varies, from full and comprehensive to third party or theft and damage only.
Your choice of excess will also affect the price of your premiums. Think about what you really need. Is it worth scrimping and costing yourself a lot more in the long run? Use a comparison site to check your options but make sure you get appropriate coverage for your needs.
Other kinds of insurance aren’t legal requirements, but they are definitely a worthwhile expense that you can’t afford to skip. Home insurance is usually relatively cheap and can save you thousands if anything happens to your home.
If you are a tenant, contents insurance should be enough as the building itself will be covered by your landlord’s policy. If you are a homeowner, you’ll need complete building and contents cover.
You should also take the time to insure other valuables with loveit coverit and buy a travel insurance policy when going away. Many people neglect these as they don’t see the point. Hopefully, you’ll never need them, but is it worth the risk of losing your phone or the money you’ve spent on a trip?
Holidays are another necessary expense. Most of us work hard and get stressed out from time to time. Taking a break gives you a chance to recharge your batteries, have some fun and get rid of your stress.
While holidays are always a worthwhile expense, how much you spend depends on your budget and what you want. You certainly don’t ever have to spend any more than you can afford. Taking some time off work and chilling at home is often all you need to start feeling better, but if you can afford it seeing more of the world is always great.
In theory, exercise doesn’t have to cost anything. You can go for long walks in the countryside or try online workout videos in the comfort of your own home. But, even then you need to spend money on comfortable footwear, supports for injuries, an exercise mat and essential activewear.
Then, of course, a lot of people struggle to exercise alone. Without someone pushing them in a fitness class or supporting them by devising a gym program, they struggle to keep up with any kind of fitness regime. For these people, the expense of a gym membership or a personal trainer could be worth it.
Exercise is essential to maintaining a healthy weight, keeping fit and healthy and living a long and happy life. How much you chose to spend depends on your personal exercise needs and budget, but it is worth spending what you can.
Housing is the biggest expense for most of us with the average household spending a third of their income on rent or mortgage repayments and other related costs. But, it’s worth it.
Buying a house is more expensive than ever, and getting a mortgage can be difficult. Many of us face the prospect of having to save a huge deposit, and it can be tempting to rent long term instead.
But, this is a waste of money. Yes, mortgage repayments are now around the same as rent, but at least you are paying something off. When you buy property, you are securing something for your future.
When we’re in our 20’s or even 30’s and 40’s retirement can seem a long time away. With most of us now having to work until our late 60’s, it can be. But, it’s never too early to think about starting a retirement fund.
We’re retiring later, but living longer, healthier lives. If you retire at 68 and live to be 88, that’s 20 years of a limited regular income. Just think, if you earn £25,000 a year now, over 20 years that’s £500000. The average state pension is just under £160 a week. Even if you also get a company pension and have paid off your mortgage, it can make retirement harder than you’d like.
If you want to enjoy your retirement and spend your later years travelling, trying new hobbies and spending time out with your family and friends, it’s important to start saving for it as soon as you can.
Paying Debts Off
Paying your debts off is an expense that can save you a fortune. But many of us don’t bother. We continue to pay the minimum without much thought. This can end up costing you much more than the original debt in interest, and it means that your disposable income is less than it could be for a lot longer. Set up a standing order to pay more, even if it’s just a few pounds a month, to cut your debts faster.