Warning! Regular saving can lead to well-educated children!
Warren Buffet said that you should not save what you have left over after spending, but spend what you have left over after saving.
That sure is easy to say for a billionaire, but still, saving should be part of everybody’s financial planning routine. Saving is always easier once you know what you are saving for. According to financial planning theory, after you have taken care of your protection needs, your next stop, most likely, will be your children’s education fee planning followed by your personal retirement aspirations. Below we explain how to avoid some not-so-obvious financial planning mistakes that can cost you your retirement.
Education fee planning made easy
Education fees are a budget killer because the cost of education seems to move exclusively in one direction – up. If you intend for your child to study internationally you really ought to budget between $30k to $60K annually, depending on the university and the location. Surely this is not just the tuition fees. The above figure includes flights, accommodation, living costs, study materials, trips, pocket money and tuition. Now ask yourself; could you easily afford to set aside such a figure today for a period of up to four or five years in a row? That’s comparable to repaying a $250k mortgage in just five years – per child! Most people have two or even three children.
Save yourself a lot of trouble and as much as half that money and start setting aside some money now. We have developed a handy calculator for fifty top-universities around the world. Enter some basic details and the calculator will show you how much you should set aside per month in order to hit your target. How much money can you still save? Find out instantly.