For most of us, there are five main areas in life where more than 50% of the money we earn in our lifetime will be spent. The five fields are – House, Auto, Kids, Education, and Retirement.
Here’s what everyone should know about saving for these times.
Don’t bite off more HOME than you can chew
How much, realistically, can you afford to spend on a house? One of the reasons that people find buying a house overwhelming and massively expensive if because they are taking on more debt than they can handle.
also wise to bear in mind that a home costs much more than the price you buy it
for. You still need to insure the home, decorate the home, furnish it, keep it
in good conditions and run it.
be sure to take all of the variables into consideration when you are looking
for a home and to decide what you can, and can’t, afford to spend and/or
Don’t let your CAR drive you to the poor house
The same is true with the car. Many people will pay much more than they can afford for a car simply because they want the newest or fastest model. But this can often lead people to get into serious debt.
Also, there are many perfectly good cars out there that are second
hand and will cost you a fraction of the price of a brand-new car.
Also, as with your home, a car has other expenses to account for rather
than a simple monthly payment. There is insurance, gas, parking, repairs, etc.
All of this should be considered when looking at a new car.
Take care of your
Your health is hugely important to the overall
quality of your life. After all, it doesn’t matter how much money you have if
you are in too poor health to enjoy it.
In the UK we are lucky top have access to NHS
healthcare that is free at the point of use. However, if you want to ensure you
are taking the best possible care of your health, then you would be wise to
invest in private health insurance to protect your
health and allow you quick and easy access to a
range of health benefits and medical professionals as and when you need them –
without the huge waiting times and any uncertainty.
Don’t let your KIDS kick you in the wallet
Children are costly. In fact, in the UK the average cost of raising a child to the age of 18 is a £185,000 for single parents and £151,000 for couples.
Having children is a costly venture and one that you cannot afford
to cheap out on as your kids rely on you for support throughout their early
life and it is your responsibility as their parents to provide that support.
The Retirement Egg Nest
How much does it take for you to retire? In the UK residents are very fortunate that we all receive a state pension once we reach the retirement age, and for those of us who are working full time, we may be lucky enough to have a private pension too.
However, is this going to be enough to cover yourself comfortably once you retire? You must ensure that you are covered well enough to be able to live comfortably into your old age, Afterall, you have earned it.
There you have it, five most expensive parts of life. Many people these days have however found a way to ease their burden by taking up insurances and setting up savings funds to cover big life events. The question is: have you?