Life is predictably unpredictable. Regardless of your age or occupation, there will always be an event that life brings your way which will require financial planning. If you’re just starting out in adulthood, there are five specific life events that demand financial planning for which you should prepare.
- A New Baby
Creating a family with the person that you love is a beautiful thing that requires years of emotional, physical, and financial commitment. To ensure that you and your partner are prepared for the responsibilities awaiting you in parenthood, speak to a financial planner to organize your money for future expenses and a college fund.
Retirement is the one aspect of life that many people begin to plan for during their early years. A comfortable retirement can be achieved through proper financial planning and clever investments. Some employers offer generous retirement plans for remaining with their company for a set amount of years, so if you can find a job with such benefits, capitalize on it immediately.
- A Big Move
Relocating to a new home, even if it’s in the same neighborhood or city, can require a fair amount of financial planning. Moving expenses can be more extensive than previously thought. The shift in utility costs is also a financial aspect of moving that should be taken into consideration. If a move takes you into a different state, you must also look into the difference in state and local taxes that you’ll be expected to pay.
- Graduating College
While some people are fortunate enough to acquire a scholarship that pays for their entire college education, many others have to rely on student loans. Once they graduate, student loans immediately begin to increase with interest. This is a critical time in a young person’s life where their financial decisions will play a vital role in the creation of their future. Financial planning will help them to pay their monthly student loan payments while affording proper housing as they begin their new life as an adult.
Marriage marks a moment in your life when you’ve decided to combine your life with another’s. While these are lovely sentiments, marriage also brings the promise of combined lives in every aspect – including financial. When two people decide to get married, serious financial planning should be in order regarding their personal property, personal assets, existing debts, taxes, and inheritances.