We all have big events throughout our lives, but how and when should you start saving for them? You don’t know when they’re going to hit, usually, and who knows how expensive they’re going to be to manage? But thankfully, as a society we’ve been at this for a few years now, so let’s go into a bit of detail below about how you can start saving for those major life events you keep hearing about!
Tally Out Likely Life Events
You’re the one currently living your life, and you know it best, so it’s time to tally out the likely big events that are going to happen to you throughout your life. What might happen in the future, based on what’s happening now?
If you’re single, include moving in with someone else, or a potential wedding. If you’re married, maybe tally down a baby one day? All in all, think about what would happen to you, rather than anything that could ever happen, and only think about saving up for those.
Know the Average Costs
Then you’re going to need to get to know the average costs of these life events. Major life events are, by their very nature, pricey, and these costs are going to go up and down. Which is why you need a big picture – don’t just look at current average costs, but look at costs of the years too, and how they’ve fluctuated.
For example, it’s good to know just how much something like a funeral is going to cost; contacting some local funeral directors for their price list is a good way to get an average here. Make sure you tally this into your savings fund and just how much you put away each month. Of course, it’s unfortunate, but a funeral might need to take place at any time, and they’re expensive to try and budget for on the fly.
Tighten Your Purse Strings
And by that, we mean make sure you’re not leaking money anywhere, and not just saving those spare pennies in a jar for later! So, look at your current bill tab; how much are you paying? Is it average across the nation? Are there any companies you can switch too, for a lower electricity or gas and heating bill? Because a lot of money can be saved at a time like this, and over the long term too.
Also think about your benefit entitlements; are you able to claim anything from the government, or charities, to help support you? Because if you’re not receiving these entitlements at the moment, you’re definitely leaking money there!
Major life events are going to happen, there’s no doubt about that. So, let’s make sure you know when and how to save up for them. Start right now with a savings account, and make sure you know which events are most relevant to you – don’t waste money and don’t throw any away saving for something that won’t ever affect you!