Saving for Life's Milestones

Many of life’s most exciting milestones require a level of financial preparedness. Higher education, marriage, home ownership, starting a family, and retirement all require significant investment, so try to be prepared! Developing a financial strategy for any of these events can relieve some of the financial challenge that comes with them. Let’s review a few methods to help you prepare for some of life’s most exciting events!

Saving Money for College

With rising tuition prices, getting a head start on education expenses is an important step for many families. Putting extra income, such as tax refunds, bonuses, gifts, or inheritance money, into a college savings account can be good ways to get started early. Remember that the earlier you start saving for higher education, the longer your money has the opportunity to grow. Seeking out scholarships and grants can also help mitigate some of the costs. Try to be vigilant for those opportunities in the time leading up to college.

Saving Money to Buy a Home

Saving money for a house (or any significant purchase) is complex and may take some time, but it is possible. You should also know you must save for more than the down payment. Other costs, such as closing costs and moving expenses, come into play, and you should plan for that recurring monthly mortgage payment. It will help if you determine how much you'll need to save to cover all possible factors, then create a monthly budget on how much you can put aside into savings for this purchase. For a down payment alone, homeowners typically must front 10% - 20% of the home's value.

Saving Money for Marriage

Getting married can transform a couple’s finances. Not only are there several expenses that may come hand in hand with marriage (new home, wedding, raising a child), but both parties might pool their finances, which can have some growing pains. Open communication about each other’s income, debt, and financial goals can help you budget for your future. Having an agreed-upon financial strategy between the two of you may save time, money, and frustration.

How to Start Saving Money for a Baby

When expecting a child, finances might be the least of your worries. However, by the time your child is born, several factors may be at play that can affect your finances. While many have health insurance to help with childbirth costs, that's not where the expenses end. After childbirth, you may need to plan for parental leave and the possible loss of income that comes with it. If both parents are ready to return to work, childcare services are another significant financial expense that you should plan for every week.

Later, parents may be paying for extracurricular activities and helping their kids purchase a car. And then there’s college tuition to consider. You can be proactive by starting a college fund for your children and a savings account for significant purchases. While you may not be able to anticipate all the financial expenditures that may arise, the sooner you start saving for parenthood, the more financially prepared you’ll be.

Saving Money for Retirement

A retirement fund can be essential for individuals who want to preserve their way of life after they retire and no longer have employment income. Retirement planning should start early in life. Consider maximizing contributions to retirement accounts as soon as possible to take full advantage of saving. Once you build up a large amount of savings, resist the urge to take any out early. By regularly reviewing and adjusting your retirement strategy, you’ll be able to stay on track for the long haul.

You can learn more about Retirement Planning Strategies on our website.

Saving is a great way to promote long-term financial health, but what if you can’t work as long as you intended? An unexpected illness or injury can significantly impact your ability to earn income and ultimately put a lot of financial stress on you and your family. How would your family be affected if something happened to your home, car, or physical ability to work?

That’s precisely why you should incorporate insurance into your financial strategy. Life insurance, homeowners’ insurance, auto insurance, and disability insurance are just a few types of insurance that can help preserve your livelihood in the case of a serious accident.

Forming a financial strategy is necessary to prepare yourself for many of life’s most exciting milestones. By setting clear goals and saving diligently, you can promote financial readiness for whatever life brings. Remember, it's never too early or too late to prepare for the future.