7 Financial Life Events You Should Prepare For
Many of the major events we experience in life, both planned or unplanned, can have a significant financial impact on our lives.
From getting your first job to sending your kids to college, having some financial know-how can help to ensure these moments are full of joy, rather than worry.
1. Your First Job
This is where your financial journey really begins. And, since you are likely earning more money than you ever have, it’s important to have a plan for how you will use that money wisely.
2. Paying Off Student Loans
One of the best ways to pay off student loans is to pay more than the minimum each month. The more you pay toward your loans, the less interest you’ll owe — and the quicker the balance will disappear.
3. Buying a Car
Saving up for a car before you buy minimizes the amount you have to borrow, and can save you a substantial amount in interest.
4. Buying a Home
A great first step is to figure out how much house you can afford to buy. You can come up with a target price range based on the area you want to live in, details about the type of home you want, and how much you’re comfortable spending on a monthly mortgage payment.
5. Changing Jobs
At some point during your career, you may change jobs. Generally, this can be a smart financial and professional move, but changing jobs is still something you’ll want to plan for financially.
6. Saving For Your Kids’ College
One great place to start building education savings is in a 529. These are savings plans, usually sponsored by state governments, that encourage saving for future education costs
Retirement may seem far away, but it can come up faster than you expect and, if you’re unprepared, you may struggle financially. Saving for retirement early can provide peace of mind later.
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