There is no debating the fact that life comes at you fast. Expected and unexpected life events can easily throw off your financial equilibrium, and even many events you have wished for come with unexpected price tags.
The big question is how to be prepared for significant life events without spending your time fearing the future. Many people find trusted financial advisors, like the team at Grace Life and Wealth, to be excellent resources when trying to make wise decisions about events that may be decades away. Turning to knowledgeable and caring professionals can help take away some stress and add confidence that you are making moves to build a better future.
Property Investment
The idea of buying property as an investment is popular in Australia and is a common way to build wealth. Before you sign on the dotted line and take on repayments for a vacation or rental property, you should speak with an experienced financial advisor. While purchasing a property can be a great idea, you should understand where it fits into your long-term plan. Otherwise, it can become a complicated expense that offers little or no benefit to you.
First Home
For many, buying a home is the most significant purchase they will make. It would be best to have a few factors in order before you begin searching for a home.
- Save enough for a downpayment.
- Ensure you have a good credit score, which is essential to get the best interest rate on your loan. A score above 740 is excellent and will position you for the best rates.
- Assess your overall financial health.
- Get pre-approved on your loan before you find the house you want.
- See how the house you want fits into your budget, and be sure to include taxes, home insurance, maintenance costs, and utilities.
Moving
Relocating around the corner or across the country can be stressful and expensive. If you have time before you must move, save as much for your expenses as possible. If you are relocating because of your job, approach the company for a moving allowance to help offset some of your costs. You can also try to negotiate a higher salary or other perks to make the move worth your while. Moving expenses add up fast, so remember to factor in your moving truck, storage facilities, movers to pack and move your things, security deposits or a downpayment and closing costs.
Getting Married
The time leading up to your wedding is exciting as well as potentially expensive. Weddings tend to take on a life of their own, and a simple, dignified ceremony can morph into a Bollywood production. Your budget is the best way to reduce cost overruns, provided you stick to it. While it may be difficult, try to make tough decisions based on impact or other importance. For example, imagine how much of an effect imported European crystal will have on your big day versus how meaningful it would be to fly your grandmother in for the wedding.
Several less romantic details should be dealt with before exchanging vows. Financial preparation as a couple is vital but is often overlooked by engaged couples. Both partners will benefit from financial transparency and sitting down with a financial advisor to lay the foundation for a successful financial future.
Starting a Family
Getting ready for a baby is exciting and can be expensive. Many expectant parents find resisting nursery items and clothing extremely difficult. A budget will be necessary, just as it was when planning your wedding. Health costs can increase as even the most routine pregnancies have unexpected expenses. As always, consulting with your financial advisor can help calm some of your fears and give you intelligent preparation strategies.
Children
Parenthood is one of the best and most life-changing events you can experience. It is also an excellent reason to work with your financial advisor to plan. You will need to arrange for:
- Life insurance
- Updating your will to include a legal guardian for your child if you and your spouse should perish
- Education savings
Education
Saving for education is an excellent way to prepare to help your children. Your financial advisor can offer suggestions regarding the best way to make the most of your money.
Health and Illness
Whether you, your partner, or another member of your family becomes seriously ill, having the means to navigate the health challenges is vital. You may need to make changes to your life, like giving financial assistance, helping with day-to-day care, or inviting the one struggling with illness to move in with you. Having money put away as an emergency fund can be especially helpful.
Unexpected Health Issues
Preparing for the unexpected is a large part of planning for major life events. Health problems can show up slowly over time or can be a sudden, unwelcome surprise. Either way, you need to look at the facts and possibly have difficult conversations to ensure you will be prepared should you face health problems.
An extra savings account can help cover the costs of expenses related to an illness. Likewise, making a plan with your financial advisor can help you prepare your finances as well as other issues like investing to ensure you have money available if you need extra funds.
Retiring
Retirement is something that requires significant preparation, especially if you have specific goals or a particular lifestyle you want to achieve. Saving, investing, and salary sacrifice to your super are all activities that can help you prepare financially. However, before making random choices about your future, your best bet is to sit down with an advisor interested in learning about you and your hopes and dreams for retirement. Together, you can map out a way for you to feel confident about what your future holds.
Starting a Business
Whether starting your own business is a long-time dream or a new idea, you must make some financial moves to ensure your success. Those wishing to start their own companies frequently say their most significant roadblock is finding the money needed to fund the venture.
Set yourself up for success by saving as much as possible. Ask your financial advisor for recommendations.
Loss of a Spouse
While no one enjoys thinking about the painful reality, there is a high probability that you may lose your spouse. A life insurance policy is vital so the enormity of their loss and the necessary paperwork do not blindside your spouse. Preparation is the best way to assist the grieving partner. Ensure important documents, passwords, and keys are easy to find. Make your wishes clear and give your spouse and lawyer any written instructions. Ensure your financial advisor has updated paperwork for your spouse.
The unexpected and expected events that shape your life can have stunning positive and negative impacts. This is why you ought to make essential planning decisions well ahead of any potential turmoil. You will make better choices when there is time to look at options and talk about potential consequences with your financial advisor.
If you have questions about decisions coming up fast and those that are further down the road, please get in touch with the professionals at Grace Life and Wealth. Our team of advisors have the skills and knowledge to help you as you plan for the many life events you will experience. Do not fail to plan; speak with one of our advisors and feel confident about your future.
