The following post about how to take care of your finances before moving out of your parent’s house was written by Christopher Haymon from Adulting Digest. Leaving college and entering the “real world,” Christopher Haymon learned a valuable lesson in the perils of not budgeting or saving. He writes about finances in his spare time in an effort to help others. He created Adulting Digest to help others who need help navigating the world of adult finances
Planning for your future — or a future without you — can be one of the most challenging experiences adults face during their lives. There is so much uncertainty in a day, let alone a lifetime. However, life planning doesn’t mean predicting the future; it means being prepared for it — whatever it might be. The Wicked Wallet is here to tell you that it’s never too soon and never too late to think about how you want to spend your golden years, the financial considerations you have at every stage in life, and how you want your family to be cared for in your absence.
Financial Steps You Need to Take as an Adult
There are different financial considerations you have to make at different stages in your life. For example, you’re probably only going to need to consider the cost of tuition when choosing a college to attend, not twenty years after graduation. In your 20s, you might be considering paying for college and a car, while in your 30s, buying a house and starting some investments take priority. Your 40s and 50s might focus on trusts, assets, dividends. In your 60s, it’s time to save as much as you can by downsizing, paying off debt, and making final living arrangements.
Climbing the Ladder to Financial Security
Pursuing entrepreneurship? One of the best and most essential tools for progression in your business career is the MBA. Not only is this a proven tool to increase your financial security, but it also provides a vehicle for your own self-investment that will benefit your family for the rest of your life. New prospects and career paths become available with your newfound leadership potential as well. With a larger professional network and increased skill set, an MBA will be the vehicle that helps you drive to the top.
Make Sure Your Loved Ones Are Taken Care Of
Look around your home. What would change without your income or contribution? Would your family be able to pay the mortgage? Could your partner manage the home without your help? These are some of the questions people ask when thinking about how to help their family continue on without them. Some ways to handle this situation include:
- Taking out a life insurance policy. There are a lot of options, from term to whole, and choosing the right length is important.
- Pre-paying for funeral expenses. You can take care of your end-of-life arrangements now so that your family isn’t burdened by those costs while grieving your absence.
- Contribute to a 401k or other retirement fund. This is an easy way to set aside money to help you enjoy your golden years or create a financial cushion if your family needs one.
Plan for the Retirement Life You Want
Retirement can seem so far off for many of us, which is precisely why we should start thinking about it now. The sooner you start saving, the more you’ll have when you are ready, so you can continue to live a lifestyle you expect and enjoy. Retirement funds allow you to:
- Increase the amount saved by working for an employer who matches your contribution.
- Diversify your investments to make sure you won’t lose too much with a market change.
- Pay off all the debt you can before retirement. Budget throughout the years so you can retire with a paid-for home, car and no student loan debt.
Some people want to retire to a vacation spot, such as Florida or North Carolina, so they can really dedicate retirement to fun and relaxation. Others want to move closer to family. Even though your wants and needs will likely change over the years, have an idea in your mind of what retirement looks like, so you know what you need to plan for.
Planning for your future can feel overwhelming at any age, but having a plan can make your life feel less overwhelming in a time of chaos, challenge, or uncertainty. Take time to explore all your options and opportunities that lead to financial security for you and your family.
You can find more helpful personal finance articles at The Wicked Wallet.
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