Life Events That Require Financial Planning
Life as you grow up in years will subtly tell you that you need to smarten up when it comes to money matters in a subtle way at first and bluntly as the years pass. But often we do not realize that we need to start planning for finances a long time before we actually do. Do you think it is a good idea to plan what you will do to fund your children’s education as they approach college age or would it be wiser to start much earlier? One may not be blamed for thinking that starting your own business and being told here are some great tips for you may be the only time you need financial planning, but that is not true.
There are many instances and life events that you will thank yourself for being updated on the financial planning aspect of your life:
The chance to buy that holiday home: Many of us spend the whole year looking forward to the time when you go to that summer place that you rent every holiday. And if you get a chance to actually own a place like that, it is the time to start thinking in terms of financial planning so that you don’t feel the pinch of paying the installment every month and the down payment.
When you get that huge raise: When you get a big raise at work, the first inclination for most of us is to go out and splurge in a big way. while this may seem like fun at that time, it could place a big strain on your tax planning and you will do well to start planning your finances as part of the future. This will come in handy when you are facing financial problems in the future.
When you are getting hitched: Getting married is a joyous occasion but it can place a lot of stress on the couple if they start with a financial burden due to the wedding expenses. What is more, most couple do not realize how much more it is going to cost them to set up a home together. It would pay to do a bit of financial planning at this juncture.
Graduation time or education completion: Many of us have a lot of student loans when we complete your degree or diploma. At this juncture, it makes sense to have a solid financial plan in place so that you can not only take care of your expenses but also reduce the financial burden placed on you due to the loans.
Relocating to another place: Locating from one place to another can be a big burden in more than physical and emotional terms but also financially. There are expenses like moving costs and the additional burden of paying advance for housing etc. and the difference in prices can be a big burden.
When you came into a fortune: If you have been lucky enough to come into a huge inheritance, the whole of your financial scenario can change dramatically. It makes a lot of sense to do some sensible planning to ensure that you do not spend all the money foolishly and land up with tax liabilities.
Your family is growing: A baby in the family can be a source of joy for the whole family and you may be preparing in many ways to welcome the new member. But you also have to remember that a new baby also brings with it a lot of expenses and it would make sense to do some financial planning to ensure that you and your entire family can enjoy the new addition to your family.
You started working: It makes sense to plan for your kids when they get a job for the first time in their life. You can consider talking to a financial planner in order to come up with an idea for the kids to follow when they get a job for the first time.
When you get a nice severance package: If you are in a position when you are being asked to give up a job in exchange of a severance package, then you should consider negotiating well and then when you do get the money, consider planning your finances well to ensure that you are secure for a while at least.
Retirement time: Actually you should start planning for your retirement well before you actually do so that you have everything in place when you do. Start a small retirement fund and keep adding to it so that you are in a good position financially speaking when you are about to face retirement.
We are sure that you will find this article useful if you are starting to consider your life in terms of the events that require you to start planning financially.