Monday, September 5, 2016
The Three Biggest Life Milestones And How To Save Money For Them
Life is full of milestones. Some are big, some are small and they can be different for each individual. But there are some milestones that most of us go through at least once in our lives that can have a big impact on our finances. As with any situation involving money, it's important to be prepared. Those who start being financially aware at a younger age are more likely to be able to cope with the strain life can have on their money. Take a look at the most common expensive life milestones below and find out how you can be more prepared for them.
Chances are if you went to a private school during your younger years, or had a personal tutor, this cost fell with your parents. However, moving onto higher education is a whole different kettle of fish - one that you will most likely be responsible for. Unfortunately, it doesn't look particularly pretty. The average four year degree course in a public college costs the undergraduate around $19,000 per year. British students are hit the worst by post-college debt, with some of them leaving university with nearly £50,000 worth of debt. However, there are ways to help cushion the financial blow that education can have on you. Look into what grants, scholarships or bursaries you may be able to receive and consider opening a student bank account. Many can offer freebies such as discounted travel and of course they come with a big overdraft in case you need it. Just be careful not to rely on it too much as you do need to pay it back!
Buying your own house is a huge achievement in this day and age. Inflation and recession has caused house prices to shoot up hugely over the past 40 years. In the 1970s the average price of a new home was $48,000. Today, you are looking at paying around $270,000. It can sound a bit scary, but the truth is that the only person profiting from your rental property is your landlord. However, with the sheer amount of mortgage lenders on the market at the moment, it can be difficult to know who to trust with your money. If you are looking for prime lending, for example, don't just go with the first bank you see. Shopping around and considering private lenders can ultimately help save you money in the long term.
Many of us plan to have children once we are settled. But what a lot of people don't plan is how they are going to afford everything once their baby arrives! It's not just the birth that's pricey. Kids can prove expensive what with post-natal care, food, clothes, and nannies if you need that extra help. You can, though, save money by taking just a few simple steps. During the birth, try and say no to any add ons you are offered. Check that your private room doesn't charge and avoid turning on the television - some hospitals charge for TV usage. Nurse your baby naturally if you can and avoid buying loads of baby clothes before your little one arrives. Chances are, they won't fit in them either way!