Hey everyone, I’m Sarah, a Tax Associate at Bette Hochberger, CPA, CGMA. I am also a money coach on the side. I like to Work with individuals to get their spending habits better, as well as wealth management, increasing net worth, decreasing debt, and management strategies.
Today, I want to discuss financial planning for major life events. I understand the importance of sound financial planning during significant life events. Whether you’re getting married, starting a family, or buying a home, careful financial preparation is essential for a secure future.
So, keep reading for guidance on how to navigate these major life events and achieve your financial goals.
Getting Married: Combining Finances and Setting Joint Goals
When tying the knot, open communication about finances is crucial. Start by discussing your individual financial situations, including debts, assets, and spending habits. Create a joint budget that considers both partners’ incomes and sets clear financial goals. Prioritize debt repayment and build an emergency fund together to face unexpected challenges.
Parenthood: Budgeting for New Expenses and Securing the Future
Welcoming a child is a joyous occasion, but it also comes with increased financial responsibilities. Plan for new expenses, such as medical costs, baby supplies, and childcare.
Review your health insurance coverage and consider life insurance to protect your family’s future in case of the unexpected. Begin saving for your child’s education through college savings plans like 529 plans.
Homeownership: Preparing for a Real Estate Investment
Buying a home is a significant financial decision. Evaluate your budget to determine how much house you can afford, considering mortgage payments, property taxes, insurance, and maintenance costs.
Save for a down payment to secure better loan terms. Understand the various types of mortgages available and choose the one that aligns with your financial situation and long-term goals.
Insurance Considerations for Life Events
Life events necessitate a review of your insurance coverage. Ensure that your health, life, and disability insurance adequately protect you and your family. Update beneficiaries as needed to reflect changes in your life circumstances. Work with a qualified insurance professional to assess your coverage needs accurately.
Setting Long-Term Financial Goals
Major life events present an opportunity to reassess and set long-term financial goals. Consider factors like retirement planning, building an investment portfolio, and creating a diversified savings strategy. A financial coach can help develop a roadmap to achieve these objectives while aligning them with your values and risk tolerance.
Emergency Fund and Contingency Planning
Life is unpredictable, and having an emergency fund is essential. Aim to save three to six months’ worth of living expenses in a separate account to handle unexpected situations like medical emergencies or job loss. Contingency planning ensures you have a backup plan in place for various scenarios.
I hope you all enjoyed today’s blog! By creating budgets, setting joint goals, addressing insurance needs, and working with a financial coach, you can navigate these significant milestones with financial security and peace of mind.
See you next time!