Reaching financial independence and saving for the future
February 18, 2019
In the final episode of How to be Good with Money, Eoin McGee set out to help busy couple Marina and Brian to achieve their goals of saving enough money for their children’s college education, paying off their mortgage and achieving financial independence by the age of 58.
Although Marina and Brian played it safe with their money, Eoin estimated that they wouldn’t reach financial independence until the age of 73. If like Marina and Brian you’re thinking longer-term, saving for your pension is something you need to prepare for long before you need it and you should start planning for your retirement as soon as possible.
Using a short-term vehicle to save for a long-term goal isn’t the best way to invest. The aim is to invest in something that’s going to beat inflation and provide you with a decent return. Make sure you understand the risks involved and how much you’re prepared to take. You shouldn’t invest in a high-risk product if losing some or all of your money will seriously affect your financial situation. Some low-risk options for saving your money include most savings and deposit accounts – find out more information on the different types of regular savings accounts.
If you’re saving for your child’s future, we have some money saving tips to get you off to a good start.
See our How to be Good with Money page to catch up on previous episodes of the TV show.
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