Get ideas and help to deal with major life events – so you’re prepared both financially and emotionally to move forward at your best.
In the blink of an eye, your life can change. Are you prepared?
While life brings us many highs and lows that we can’t emotionally prepare for, we can control our wallets.
There are plenty of life events that can be very expensive, so smart investors should always be prepared for a rainy day.
Which life events tend to be the most expensive?
As you might know, I am a recovered stress sufferer – and truly know what it’s like to deal with challenging times.
Thankfully I also know the benefits of planning ahead – so challenges and tough times don’t overwhelm you as much.
With this in mind I put together this article to help you to deal with major life events – so you’re prepared both emotionally and financially.
12 Major Life Events to Prepare For Financially
Keep reading to find 12 expensive situations in life—plus, how you can prepare for them.
Many people dream of having a child—it’s truly one of the most special moments in your life! However, it’s also one of the biggest expenses for parents, as there are so many costs associated with raising a child, from birth to adulthood.
Parents will need to consider a wide range of costs, including medical care, daycare, clothing, food, toys, and entertainment.
There are likely to be other large costs in relation to lifestyle changes too, like swapping the sportscar for an SUV or buying a larger home to accommodate the family.
Most couples would be smart to start saving years before they have their first child, so that their finances are in order. This is particularly important if one parent plans to take extended leave from work to look after the baby.
Another huge expense associated with children is their education. While many parents send their kids to public school, which is free, there are still expenses to consider like field trips, school supplies, and clothing.
However, the largest educational expense is paying for college. Yearly tuition in the US can range from around $9,687-$35,087, depending on whether the school is public or private.
Generally, in-state tuition at public schools is the cheapest, but private schools, such as the Ivy League, can easily run over $50,000 per year.
With any luck, your child might qualify for a scholarship to help with the cost, so encourage them to study hard!
If you’re about to tie the knot, be prepared to open your wallet!
Unfortunately, weddings are more expensive than ever.
You’ll need to budget for your wedding dress, venue hire, catering, flowers, and music, just to name a few.
While some couples are lucky enough to have help from their parents, most newlyweds need to pay themselves.
There are always ways to save money on weddings though, such as inviting fewer guests or getting married on a weekday.
If wedding expenses are more than you’d planned, it can help to get financing, such as an unsecured personal loan.
Plus if you need support for your relationship, check out my video course Secrets of Happy Couples.
Hopefully, you’ll never need to worry about this expense, but for some, divorce is a serious financial issue.
The average divorce cost in America is $12,900—even split between two people, that’s still a large expense.
However, if the divorce isn’t amicable and the case goes to court, your costs can skyrocket.
Lawyer fees are quite high, especially when child custody is an issue.
Divorce can come when you least expect it and can be traumatic, making it a true financial emergency for many.
If you need emotional support to get through your divorce, check out my video course Broken Heart Recovery.
Have you ever been laid off?
Sadly, companies often go through staff easily, meaning many adults have experienced the pain of getting made redundant.
Often, employers will provide severance packages, depending on how long you’ve worked with the company.
But others might be left with nothing, leaving this scrambling to come up with rent money.
Because it can take a few months to find another job, it helps to have savings in case of emergencies like this one. That way, you’ll still be able to eat, pay rent, and live your life until you can find another job.
A home purchase is probably the biggest expense any of us will ever deal with.
We save for years and years to have a downpayment, hoping to buy a home we can treasure for years to come.
To purchase a home, you’ll need to save a deposit then get approval from your bank for a mortgage.
There are a number of closing costs associated with home ownership as well, so be sure you have enough to cover all of your costs.
If you’re thinking of buying property in the future, it helps to speak with a financial planner. They can help you with your finances and can help you get the keys to your dream home sooner.
It might not be the most important expense in life, but money isn’t just for socking away–you also need to enjoy yourself in life!
For many people, planning a once-in-a-lifetime vacation requires plenty of savings.
Perhaps you want to spend the summer in Europe or go on a safari in Africa—it’s all possible!
To afford an incredible vacation, try to save a little bit of money each month. It might take a while, but it’s definitely achievable.
Some savvy travelers also use reward credit cards for daily household expenses. These help you learn points for each dollar you spend, which can then be converted into free hotel rooms or frequent flier miles.
Just don’t forget the extra costs like spending money, travel insurance, and passport renewals.
Do you dream of working for yourself?
Running your own business is an amazing way to take control of your career, but there are plenty of costs associated with running a business.
Keep in mind that it may take a few months (or years) until your business starts turning a profit.
So, you’ll need enough savings to sustain yourself until your business is earning more money.
If you need support to start your own business, explore 1-on-1 business coaching with me!
The kitchen sink isn’t just leaking—it’s flooded the entire house!
Unfortunately, there are plenty of things that can go wrong when you own a home.
While renters won’t have to pay out of pocket for major repairs, homeowners will.
You never know when something will go wrong with your home, so always have some savings to cover unexpected costs like this.
In addition to repairs, you might want to renovate your home at some point. This can help add value to your home, but can also be expensive—especially if you want to update your kitchen or bathroom.
Retirement can creep up fast, so take financial planning seriously from a young age.
Taking the time to understand your 401K and social security will pay off in the future.
Even if it seems like retirement is far away.
Being smart about your savings allows you to enjoy your retirement without needing to worry about money.
Plus it allows you to relax, travel, or spend time with your grandkids.
Sometimes illness can be a huge financial burden.
Health issues like cancer or serious injuries can leave us with exorbitant medical bills that aren’t always covered by health insurance.
Or, even if they are covered, you might still have high deductibles to worry about.
If you’ve had a serious injury or illness, this can also mean months of time missed from work. How will you cover your expenses if you’re physically unable to work?
It helps to buy the best health insurance you can afford, making it easier to cope with any unexpected health issues.
If you need support to eat healthier and clean up your diet, explore my video course Stop Emotional Eating.
Moving house can be another big strain on your finances—and your time.
From hiring movers to spending all of your free time moving, it’s a huge and stressful process.
If you’re considering a move in the future, research moving costs so you know what to expect.
Of course, it also helps to clean out your home!
Be sure to get rid of things you no longer need, so there’s less to move!
With so many major life events involving money, it can feel daunting and worrying. However, one of the best ways to prepare is by being smart with your money.
Get into the habit of saving part of your paycheck each month and make wise investments that are low-risk. It’s also a great idea to meet with a financial advisor, as they can come up with a strategy to help you save.
That way, you’ll be prepared for anything life throws at you!