How to Plan for Major Life Events: Major events like weddings, buying a house, or welcoming a child into your life are some of the most exciting moments in our lives but also the biggest ones to plan for. There can be a lot of stress involved, whether that is financial or emotional.
How to Plan for Major Life Events
Here are some of the top three major life events and how you can prepare for them:
Planning your dream wedding
There are seldom significant moments in life that require more planning than your wedding day. The average cost of a wedding in 2022 was £18,400, a six per cent increase from the average price the year before. This fee is made up of the cost of a venue, wedding attire, floral arrangements, and decorations amongst many other fine details.
Setting a budget early on and sticking to it will help you decide how much money you have available for each component of your big day. It will also advise you on the amount you need to save before your wedding so you can avoid unnecessary spending and cashing out more than you can realistically afford.
Buying a home
Buying a house is exciting but expensive, to say the least. The reality for many of us is that it will take months or even years of saving to get to this point so it’s better to plan in advance for this major life event. You need to decide whether you should sell your home first, get a budget in place, and find a property, not to mention the clean-up and packing that comes next.
First things first, you should get your finances in order. Do you want to build your savings to purchase a property or take a loan out to cover the costs and pay it off later? If you’re leaning towards the second option, it’s a good idea to start building your credit history to improve your reputation as a responsible borrower.
Starting a family
Are you starting to fantasise about what life with a family would be like? Everyone plans their lives differently but having children is a serious commitment. Studies show that the cost of raising a child to the age of 18 stands at £160,692, even more for lone parents. There are some sure signs to look out for if you’re not totally decided.
It’s important that you and your partner are on the same page with this and that you feel your emotional and physical health is in a good place. Having a steady career and a financial safety net is also a good idea as starting a family can be unpredictable so some surprise expenses may need to be covered.
Navigate Major Live Events Successfully
Open communication is key when it comes to planning for these major life events and that goes for shared financial goals too. If you feel that you need some assistance making your plans, you can always speak to financial advisors and family planners.
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