Life is full of ups and downs, and you never know what’s just around the corner. This is why it’s sensible to have savings put aside in case of emergencies, but a rainy-day fund isn’t the only thing you need to save for. There are also key life events that you need to think about financially preparing for, and even though you might not follow some of these paths, others you will.
Not everyone is interested in getting on the property ladder, and some might struggle to achieve this goal more than others with the rising costs of property, living, etc. However, becoming a homeowner is important to you. You should start putting money aside for a deposit sooner rather than later. It might take years, but if you’re sensible with your money and keep reminding yourself of your goals, you’ll be able to achieve this.
Getting married is a very traditional life milestone, and many modern couples are more than happy to never tie the knot and live with each other as partners instead. Nonetheless, there are still a lot of people who want to get married, whether that is for religious reasons or because they still enjoy this tradition. Weddings are expensive affairs, even if you’re not planning to have a big party for hundreds of guests. If you want to have the wedding of your dreams, you’ll need to sit down with your partner and carefully plan the budget for your nuptials. Furthermore, it’s important to look beyond the wedding and honeymoon and start thinking about your shared goals in your marriage and what kind of financial planning these steps together will need.
Having children is not for everyone, but if you have dreamed of starting a family, it is something that you certainly need to prepare for. Kids aren’t cheap, and although you don’t have to be a millionaire to give them the best life, it does help to give you peace of mind if you’re not worrying about money while trying to raise a family. If you intend to bring children into the world in the coming years, start thinking about the cost of starting a family to make sure you have some savings to help you cover these expenses and how children will affect your current lifestyle and monthly budgets.
Another important chapter in life that you should financially prepare for is your retirement. Even if this feels like it is years away yet, putting aside savings decades in advance can help you have more flexibility during your retirement. If this next phase in life isn’t that far away, or you have recently retired, you might want to think about contacting a financial advisor to help you decide how to manage your retirement fund and pension effectively.
Not everyone will want the same things out of life, but listed above are some of the key events that a lot of people do come to at some time or another, and it’s important to be financially prepared for them.