There are a number of big life events, which some people consider milestones, that we all look forward to experiencing. Getting married, buying a home, expanding your family – these are all huge events that should be cherished and enjoyed. However, you also have to prepare financially for these life events, because they’re a big investment, and you don’t want to break the bank.
Here are a few useful tips as you begin to financially plan for your personal milestones:
Track your current expenses.
Knowing where your money goes every month is key in planning out a budget for your life event. Make a list of your monthly bills – rent or mortgage, utilities, credit card payment, any other debt you might have – and how much you’re spending. Compare that with your monthly income and you will have a good idea of what you can reasonably afford.
Set personal savings goals.
You’ll want to have a Polam savings account or certificate of deposit (CD) for this, if you don’t already have one. Make the best determination of how much you’ll need to save to achieve your goal, and make sure to add on any potential additional expenses. Once you know your number, set up recurring deposits from your checking to savings account.
Make sure to keep your savings separate.
Many people keep all of their funds in one account, but keeping the money you save in a separate account will make it much more difficult to dip into it. With a Polam savings account or CD, you can earn dividends on the funds in your account; and with a CD, the longer you save, you’ll get a much stronger return on your investment.
Don’t ignore your budget as time goes on.
Unexpected financial changes can happen at any time, and closely watching your budget can be key in avoiding overspending. If you’ve had a financial loss such as a job loss (or a loss of hours) or an unexpected expense, you may need to reevaluate your budget and how much you’re able to save.