There are loads of reasons to save money, here are just a few:
- House deposit
- Children’s education
- Car purchase
- Holiday of a lifetime
Not only will you receive a return on your money over time, you also save the interest you would have paid on borrowing the money.
Savings VS Borrowing:
Borrowing €20,000 at a rate of 5% will cost you €377.42 pm which is an additional €2,645.20 in interest repayments. A total cost of €22,645.20
On the other hand, saving €333.30 pm will give you €20,206.88, after tax and charges, with just a 3% interest rate and a cost to you of €19,800.00. A difference between the 2 methods is €3,052.08. That’s the price of a very good holiday or a small second hand car. When you save with an Insurance company, your money is invested in unit-linked funds. Check out this short video on how funds work.
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The difference between borrowing and savings is even greater when you look at larger sums of money such as the cost of putting a child through college. Many parents find that they have to borrow or re-mortgage their home just to put one child through college. Check out how much it will cost you to put your child(ren) through college by using the following calculator.