They say a person who has everything planned out is better off than those who do not have things sorted out. This is true to a certain extent. Things may not always go according to your plan, but knowing that you have a plan in the first place will do some damage control. A person does come across some unforeseen events in life, but who doesn’t?
People who live in the moment, thinking that when the time comes they will think of a solution or plan are most likely to be in a lot of trouble. It is ok to be spontaneous, but there are many things in life that one should be prepared for.
When we talk about planning financially, we mean that one should have some financial backup for events or situations one is certain to go through. Planning financially, if not eliminate, but will reduce your chances of failure and disappointment.
Here is a list of some of the major moments of life one should have a financial plan for:
As soon as we get to middle school we hear our parents talking about saving up for our college, that is the time we realize that is it really important to be financially ready for college. As we move onto high school and get a part-time job, we should start saving bit by bit for college. Not everyone’s parents will be planning financially for their children’s college. In such a scenario it’s ok to wait a year or two to save up before starting college.
Not everyone is ready to get married, but if you are in a committed relationship it’s the same as being married. When you are with someone it means you also take care of their financial well being. If you haven’t planned or saved up money for your marriage or relationship, chances are that you would avoid that commitment no matter how much you long for it, just because you haven’t planned for this beautiful life moment.
When you welcome someone new into this world, their arrival comes with a list of expenses. This new life is too little to do anything on its own, it’s dependent on you completely. Planning financially for your kid way ahead of time will save you from any last-minute financial crunches you may face.
Buying a car can be a major moment for a lot of people. Not everyone is able to buy a car for themselves just because they didn’t plan for it. Planning financially for purchasing a car can be of great help when the time comes to buy a car.
Buying a house is like a once in a lifetime opportunity. Not everyone gets a chance to buy a house. Those who succeed at doing so have been planning financially for it for years. They save a chunk of their paycheck just to own their dream house one day. People who aren’t prepared for such big responsibilities may not get to experience this major moment.
Life tests us in many ways in sickness and health. You never know what health situation you may come across, so it is wise for you to have funds ready when you come across such a situation in your life. Medical bills can be really expensive. You should not only have money saved for yourself, but also for your loved ones – you never know what life may throw at you.
Loss of a loved one
Planning financially for funds that may be required when you lose a loved one will save you from being stuck in a terrible situation when you are already emotionally broken. Funeral and burial can be really expensive, which is why having set aside some money will always come to the rescue.
Planning financially for major moments you are most likely to experience in your life will assure that you achieve all those milestones as opposed to those who give little regard to such moments and not plan for it. Life is filled with surprises, some are pleasant and some are not. Being financially ready to will soften the blow of surprises life puts you through.
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