- buying your first home
- getting married
- having a baby
All have one major thing in common… can you guess what it is?
It’s that they all require money. Not just a couple of hundreds of dollars either… these life-changing events require a substantial amount of money. Depending on what type of plans you have for your life, the amount of money you have and the amount of money you have saved up will be the determining factor on whether or not your plans can become a reality. If you’re looking to plan ahead now for your future, here are some great ways to get started.
Plan Ahead Now: How to Save For Life’s Biggest and Most Important Moments
When you take the time out to put together a sound financial plan for these life-changing moments, it gives you a wider range of financial freedom. You’ll be able to enjoy each moment without the hassle of worrying whether or not you’ll have enough money for them. If you’re one who is financially secure, then having a sound financial plan will allow you to make better-informed decisions about these life changes.
For example, if you’re a psychiatrist, you would have no worries about relocating for psychiatry positions in a different state because you’re already financially stable. Moving costs and other financial burdens associated with moving would not have an effect on your finances. But the majority of the world isn’t financially stable like others are.
Due to that fact, it’s important that you take the time out to:
- set your goals
- prioritize the things that are of most importance to you
- devise a savings plan
All of this can help secure your financial future for all of the life-changing moments to come. Here is how you can get a headstart and plan ahead now.
It’s Not Too Late and No Amount is Too Small
People tend to think that in order to start saving, you have to:
- start saving while you’re young
- have a large amount to even get started
- make large deposits in order to save
However, that couldn’t be further from the truth. In fact, small deposits can turn into huge savings over time. The key thing with growing a substantial nest egg is to remember that regular contribution and staying consistent is what’s going to grow your savings.
Entrepreneur Magazine states that consistency is a major factor when you’re in pursuit of achieving any goal whether it’s with a business or personal goals. So, think of managing your money as your pursuit of financial freedom rather than a chore that you’re making yourself do… doing this will give you a new perspective on your finances and all of its possibilities. When it comes to planning for life’s big moments, there are three key factors to consider.
Take a look at the three big factors:
When you save money, one of the things you need to think about is what you’re wanting to do with the money you’re saving… it needs to be an achievable, tangible goal, like saving for a house or wedding. In saving for your tangible goals, you also need to have an emergency fund set up in case of unexpected events, that way when/if something happens, you won’t have to dip into the money you have saved for those big life events.
Once you set your goal, you need to give yourself a time-frame to achieve it. Now, if you have multiple goals, you’re going to need to split up your saving obligations into:
Short-term goals might be for a nice honeymoon or trip out of the country in a year. A medium-term goal might be to save for a significant deposit for a house over the course of four or five years. Your long-term goal will be something like planning for retirement.
Determine what goals you have, separate them into short, medium, and long-term goals, and start saving appropriately.
2) Make a Habit of Saving
When you first start out saving, it’s pretty easy to stay on track because it’s fresh on your mind and you have an immediate need in your mind to do it. As time goes on and life goes on, you’ll find yourself slipping away from saving every pay period. You feel guilty for not saving from that paycheck but in your mind, you tell yourself that you’ll save double on your next check to make up for not saving this time… do you actually end up taking out double? Typically no… you might set aside money to save but lots of people just fall off track and don’t save anymore.
Instead of leaving things up to yourself to remember to save, consider setting up an amount of money to automatically come out of your account and be directly deposited into your savings account.
Lots of people who have this set up don’t even miss it since it:
- allows you to never have set personal reminders
- helps to look at ways you can cut back on daily and monthly expenses
Look at ways to save on groceries and hacks on how to never pay full price for certain items. All of those little tricks might seem tedious but they can save you lots of money in the long-run.
3) Check Your Progress
When saving, it’s important that you have a rational approach than an emotional approach. Yes, some of the things you’re saving for are of great emotional value but in order to achieve those goals, you have to approach it rationally. Look at all of your goals, whether short-term or long-term and take a long-term look at them. This will allow you to see how your financial planning is working out for your goals in the grand scheme of things.
Plan Ahead Now For Your Future: In Summary
When you get to thinking of your future and all the big moments to come, you should be ready to plan ahead now. You want to make sure you have a good financial plan in place for your future in order to be successful. You’ll be happy that you were able to plan ahead financially when one of those life-changing moments occur.
Do you think you are adequately prepared for all of your big moments to come?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.