Money

Life Events That’ll Have Your Finances Reeling

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Even if you are a great planner, life is rarely plain sailing. There are all sorts of financial catastrophes that can throw you off target. Take the financial crisis nine years ago, for instance. Most ordinary working people didn’t care about the stock market crashing or the price of shares plummeting: that didn’t affect them. What they cared about was the fact that their homes were falling in value and that they could no longer afford to pay their mortgages.

The good news is that many of the big financial hurdles in life are predictable. Yes, they’re often expensive. But with a little planning, they can be overcome.

Retirement

There’s some active debate right now about when is the best time to start saving for retirement. Should people start saving in their early twenties as soon as they get a job? Or should they invest in themselves and then start saving once they’ve got a higher income later on in life? It’s a tough question – one that isn’t easily answered. How you should approach retirement probably depends on your personality. If you’re somebody who loves taking risks and reaping the rewards, then it might be an idea to wait, invest in yourself, and work hard to increase your income in the meantime. There are many ways you can do this, although finding a side hustle like trading is probably the best way. With a plethora of places to get information from, one you can start with is https://kryptoszene.de/trading-plattformen/, which is a great comparison site for trading platforms. On the other hand, if you’re somebody who hates risk and would rather just have money in the bank, you might want to start saving earlier.

If you’re not sure how much you need to save, you can use an online calculator. MSN has a tool that helps you anticipate what you’d need to save depending on how large an income you’d like. The more you save and the earlier you save it, the more income you’ll get when you reach retirement age.

Investing is a good idea and you can check out places like SoFi if you have considered investing and want somewhere to check what options you have available.

Moving Home

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Moving home is expensive. Not only do you have to spend years saving up for a downpayment, but you also have to spend lots of money on all the administrative costs of the move. There are lots of ways you can try to bridge the gap between your income and the costs of moving. For instance, Cheat Sheet recommends that people monetize their hobbies, sell all their old stuff and do home improvement projects themselves. People should also take advantage of websites like Shiply before the move itself to make sure that they are getting the best quotes possible from removal contractors. With the average price of a new home standing at more than $375,000 according to the latest US Census, buyers can’t afford to pay out a fortune just to move. One thing you need to consider is also shipping your car, CarsArrive Auto Relocation is a great idea to look into when you need to move your cars as well as your home.

College

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When will the college bubble burst? Surely young people won’t continue to pay for degrees that are becoming worth less and less every year. There’s a good chance that if your kids are young, the college model we have today will have come to an end and have been replaced by something more rational. But just in case it hasn’t, it’s worth thinking about saving up today. Remember, student loans can never be forgiven, and so having more money in the bank means that you can keep total borrowing down.

Paying for your wants and needs during retirement can be difficult. Applying for a reverse mortgage can ease your financial pressure. Unlike a typical mortgage, a reverse loan requires no initial repayment and comes with no recurring pay schedule. In fact, the reverse mortgage lender will pay you repeatedly unless you ask to be paid in a lump sum. Use the results of a reverse loan calculator assessment to determine which method you prefer and how much you can receive. Also unlike a traditional loan, a reverse loan is only available to retirees. It is meant to provide financial stability and home security when your income becomes lower due to retirement. For as long as you agree to use the home as your main residence you cannot lose the home. You will only be required to pay the loan back in full if you stop living in the home.

*This is a collaboration post

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