Life often throws us curve balls that cause us to shift our financial priorities quickly and drastically, prompting us to reevaluate our financial goals and setbacks. When this occurs, it’s a good time to take a step back and evaluate them again.
Marriage, having children, retirement and many other major milestones can have dramatic financial ramifications – learn how to plan for these and reach your financial goals!
Birth of a Child
Birthing a child can be a life-altering event that has significant financial ramifications. Find out how you can be financially prepared for this transition and explore resources that can assist with making wise financial decisions.
An expanding family often necessitates bigger homes, cars, or other expenses that you need to plan for in advance. Start by setting aside money each month so that when it comes time, there will be enough saved to purchase these necessities.
Birthing their first baby can be a monumental milestone, marking a dramatic change to both identity and status. For career women, becoming mothers requires redefinition of working life as well as adapting to an unconventional schedule that often cannot fit around parenthood’s demands.
Marriage
Life events that can have an enormous impact on your finances include getting married, having children and retiring.
Financially speaking, such events can create many unforeseen difficulties that are hard to manage. But they may often be avoided or minimized with smart planning and making smart choices.
Whenever entering into a marriage, consider creating a prenuptial agreement to protect your financial assets in case of divorce and guarantee access to them should something happen to either of you. It could even ensure your loved one will gain access to them after your passing.
Also important: discussing long-term financial goals and creating a budget to reach them. By setting and meeting realistic expectations, this can prevent conflicts about finances while creating a strong, healthy relationship between you and your partner – something which could make all the difference between a happy marriage and one that ends in discord.
Retirement
Many people envision retirement as being a time when one is free from work and able to indulge in leisure activities – whether that means spending more time with family and friends, or exploring new hobbies.
Retiring is an event with far-reaching ramifications for your finances, with most Americans depending on Social Security benefits as their main source of income in retirement. But other forms of funding could also play an integral role.
Retirement may bring with it additional financial considerations such as tax planning or long-term care needs; therefore it’s crucial that you consult a professional financial planner in order to identify an ideal plan that meets your individual goals.
Researchers studying Judgment and Decision Making (JDM) and behavioral economics have unearthed many factors that may impact retirement decisions, providing an holistic view. Their research also provides strategies for combatting cognitive or emotional factors which may lead individuals to make suboptimal choices when making retirement decisions.
Death of a Loved One
Death can have a devastating impact on finances. This can be especially true if they were your main income source before passing.
Funeral costs typically top $20,000. This figure covers burial plot costs as well as related expenses such as catering, flowers, music and invitations.
Assuming no income loss or medical care costs incurred through grief.
Pre-planning a funeral can help to alleviate some of these costs while lessening emotional strain on family.
As part of your loved one’s legacy, creating a charity, fundraiser, or campaign in their name may provide meaning in their absence while adding meaning and purpose to your own life.
