No matter what stage of life you’re at, there are big purchases on the horizon that are important to prepare for. The key to these not becoming big stressors is to start saving as soon as possible so you’re prepared when the time comes. Here are seven big life purchases you should start preparing and saving for today:
Tuition (Yours And/or Your Child’s)
Depending on your situation, you may be paying for your own tuition which means there will be some debt to pay off. If you’re still in high school, the time to start saving for college is now! You also might decide to pay for your child’s tuition. If that’s the case, it’s important to prepare for that as early as possible, too.
New Car
Whether you’re saving up for your first car or you already own one and are ready for an upgrade, a new vehicle can be a big expense. Many financial advisors recommend buying a used car and paying for it in full using cash to avoid interest rates. This means being patient and saving for a few years, so you don’t have to worry about making the monthly payments.
Wedding (Yours And/or Your Child’s)
Another big expense is you and/or your child’s wedding, depending on what you and your family decide. The average cost of a wedding in 2021 was $22,500 but this also depends on the size of your wedding, the venue and lots of other factors. If an expensive wedding isn’t in your budget, consider downsizing and sticking to just close friends and family.
Your First House
One of the more obvious big purchases comes when you buy your first house. It’s important that you do plenty of research before deciding on your first home to make sure you’re making a smart financial decision.
Furnishing Your Home
The payments don’t stop once you close on the new house. Now you must furnish and decorate the house to make it feel like a home. Consider buying used furniture and hand‐me‐downs so you can work on building your savings back up, then buying some new furniture that you love.
A Growing Family
Starting with the hospital bill when they’re born until the day they leave for college, there are constant expenses that come with having children. Once you decide you’re ready for your family to grow, it becomes more important than ever to save, save and save some more.
Contributions to Your Retirement Fund
It may seem ages away, but retirement will sneak up on you faster than you may think. The sooner you can start contributing to your retirement fund, the better, so it’s never too early to start. Contact us to learn more about retirement funds and how to start one.
All these purchases may seem overwhelming, but don’t stress yourself out too much. These costs are spread throughout many years of life, so if you start saving and make good financial decisions, you’ll be good to go. Exchange Bank of Northeast Missouri is here to help you if you have any questions, so feel free to contact us!
Exchange Bank of Northeast Missouri
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