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Financial Advice for Major Life Events

by Tony Blasini, CPC, QPA
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No matter where you are on your professional journey, each stage holds its own financial challenges. However, as a young professional, you may soon start experiencing more of these hurdles. As your life changes, so do your financial needs. That is why, in this blog post, we will discuss some of these giant milestones and what you need to do to prepare for them--with financial confidence and certainty.



Related Blog: When is the Right Time to Start Investing Your Money?

 

How to Plan Finances After Graduating College

One of the most significant financial pieces of advice that you need to understand is it is never too early to get on the proper financial path. As you graduate from college, you will most likely move off on your own and start your career. 

During this stage, you must create a financial plan that helps you cover your current expenses and the ability to live in the now while also preparing you for retirement. 

Consider the following: 

  • Create a Plan: The first thing everyone needs to do is understand where their money is coming from and where it is going. When you establish a monthly budget, it can help you not only get a better handle of your funds, but it can also help your long-term financial health. 

  • Figure Out Expenses: Leaving the comfort of home for the first time can be a huge wake-up call. Especially when you realize how fast expenses start building. The best way to handle this problem is to tackle it head-on by ensuring you understand all the costs you have to face and how they vary depending on specific packages and points in the year. This can allow you to prepare a smart game-plan concerning your financial decisions that best suit your needs. 

  • Pay Off Student Loans: It is what every graduate dreads- student loan payments. Yet, even though it may be tempting only to pay the minimum monthly payments. In certain situations, it may be best to try the aggressive repayment plan. This can help you pay loans off faster and provide you with extra money to put into your savings earlier on. 

Financial Advice When Getting Married

Getting married is a joyful time for any young couple. However, as you start settling down, know that big financial decisions await you. Managing your funds is an essential issue for most married couples. Yet, it does not always come naturally. If you are looking for that "financially happily ever after," consider the following tips you need to start implementing into your marriage:

  • Discuss Your Financial Secrets: Now is not the time to keep secrets from your partner or future spouse. You need to start sharing everything, including your debts, as well as your income. When you marry someone, you not only combine assets, but you take on each other's liabilities. For instance- it is better not to be surprised by your spouse's low credit score and have it become a giant roadblock for your future. 

  • Start a Budget: That dreaded "B" word. Yes, many couples feel budgets are a hassle. Yet, they are also extremely beneficial, especially when you are first starting your new life together. To create a helpful budget, you need to discuss your expenses, how much salary you each bring in, and how you want to divide your accounts. Figure out what makes you both comfortable financially, and how you can make this budget turn your dreams into a reality. 

  • Review Every Year: At some point, things may change in your life. Whether it is a new job or a new baby, it is essential to review your financial situation every year. This can help you get a fresh look at your financial goals, overall financial position, and assist you with figuring out what modifications you need to make along the way. 

Preparing For Your Retirement

If you want to make sure you make the most of those golden years, it is important to start discussing retirement now. Retirement planning is a process that changes over time and involves many different stages. 

Yet, if you want to build a financial cushion, retirement planning will help you get there. To maximize your retirement, implement the following actions:

  • Take More Risks: Your retirement planning needs to include estimating expenses, calculating required after-tax returns, determining time horizons, assessing risk tolerance, and doing your overall estate planning. The younger you are, the longer you have until your retirement. As a result, you need to start considering investing your assets in riskier investments and begin looking into plans that can help you in the long-term. 

  • Contribute to Your 401(K): A 401(K) is one of the most crucial components of your retirement savings. This tax-advantage account not only protects you from taxes. But it can help you generate more interest and growth on the money you earn. If you are one of those professionals that are not optimizing on it, start right now. Begin by contributing a percentage of your monthly paycheck into your 401(K) account. If your employers offer a matching contribution, make sure you also take full advantage of it.

  • Put Extra Money into your Retirement Accounts: Sure, as a young professional, you may think you have plenty of time before you retire. However, even though it may be enticing to use any spare funds to upgrade your house or car, over the long-run, it may be more beneficial to set aside that extra chunk of money and place it into your retirement savings. Why? Because this simple step can help you yield significant results and provide you with the retirement of your dreams.

If you are looking for additional methods to make the most of your major life events, contact Caldwell Trust today. We can assist you with your retirement planning, estate planning, and investment management needs. Basically, we will help you figure out how to live your best life right now and well into the future. 

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