Prepare Now for the Financial Milestones in Life
Without even realising it, the majority of us will have various financial milestones in our lifetime. The moments when we are taking massive steps forward and it will come with financial implications seemingly at every turn. Here we have a few instance in life of what many of us may see as those milestones and what to be prepared for.
Starting your first big job
Many of us had part time jobs as teenagers or whilst in our spare time at college or university and the extra cash was great but now that’s all over and you start your first full time job and begin your working life as a fully employed member of society. It’s time now to start thinking of savings accounts, tax and national security and all those other things that have never crossed your mind.
Your first pad away from mum and dad
Once you have that regular income many of us want our own place to call home. Now it’s time to accept you will have far less of that money as disposable and need to take into account new financial demands – deposit, rent, utility bills, council tax, furnishing your new place – all unfortunately unavoidable for your now independent lifestyle. Also to bear in mind are those added luxuries you enjoyed at home with mum and dad which will now need to be paid for – wifi, sky tv, phone lines to name three – all will add to the cost
You Have Your First Big Emergency
You may have become ill, had an accident or needed to replace something at short notice. Did you plan for this? Did you even consider having an emergency pot to cover yourself? It makes sense to have an account with an emergency fund in, never leave yourself short
You Decide to Buy a Home
Usually after a few years of renting the majority of us will want to settle down and buy our own house. Buying a home is one of the most exciting, but stressful decisions you will ever make. Before taking this plunge, there are a number of big financial questions you’ll want to answer. How much money do you have saved for a deposit? How much money will you need to borrow for a mortgage? How long will you be paying it back for? What are the best offers on mortgages at the time?
Starting a family
You’ve decided the time is right to start a family and are looking forward to welcoming the new bundle of joy in the house. Having a child is an amazing, life-altering event. Just be prepared for how having that little person in the house will impact your finances. Are you financially prepared for this? Because kids aren’t free.
Getting to that age to put your feet up
Its many years down the line, the kids have flown the nest and the mortgage is paid and you are about to retire and enjoy the twilight of life, but do you have enough money to last as a pension income and keep you comfortable ? Did you put enough aside during your working life?? Do you have enough to cover yourself if it comes to point where you need extra care? Are there funds available to cover funeral costs? It seems grim thinking of it now, but as long as you have been sensible in your working life and saved accordingly you can enjoy a stress free retirement.