I have always heard about the importance of having a nest egg. When I first heard the phrase I thought it was a little unclear. Over the decades I have discovered many reasons for having this “nest egg”.

• In your 20s, the nest egg often refers to needing some extra cash to start nesting (having a child) or can be a parent’s way of making sure you can pay your rent/mortgage.
• In your 30s, the nest egg may refer to saving for a home purchase or preparing for your retirement.
• In your 40s, perhaps this nest egg is needed in case you have a change of careers or having a teenager can be expensive.
• In your 50s, the nest egg could be to help with your family – parents or kids.
• In your 60s, the nest egg may be needed to offset unexpected medical bills, or perhaps retirement comes a little earlier than planned.

Whatever your age, know the nest egg is used to prepare yourself, financially for stressful times. Life can pull us down at times. We may lose our job, car may break down, an unexpected illness in the house, or unexpected death in the family. The difference between a nest egg and a regular savings account is you only use the nest egg for an emergency. An emergency is something unforeseen that must be attended to. A savings account would be saving for something you want in the future (a new car, home, children, new furniture, or even a vacation). You can plan for what you want with a savings account. A nest egg will often catch you by surprise.

I would suggest having both types of accounts. This way you are better prepared for your future and ready for what life throws your way.