Often the bad times have taught us the importance of planning in life especially when it comes to finances. Hence most of us plan because we fear what if we have to face those bad times again. But sometimes even the best events in life – a birth or a new job or an unexpected raise or dream home may require a financial plan. These are the small little things that often gets lost in the midst of those big responsibilities that we have to shoulder.
This article is again an inspiration from a client interaction; that one my colleagues had with his clients who wanted to save money for setting up his new office 3 years from now. So I thought to share some of the life events that all of us might come across sometime in life and planning for them ahead of time can help you make the most out of them when they arrive. Here’s the list of 7 positive events that might inspire you to do some financial planning for them:-
1. Getting a big raise that you’ve been counting on for years
Pay raises are typically small and incremental. But if you’ve a got that big raise; it calls for some celebration. Along with celebration you also need to do some planning for the future so that the entire money that you make every month does not get burnt. As they say “It’s not salary, it’s your spending habits that make you rich”.
2. Just Graduated and started working
Graduates might think that they don’t have enough money to talk to a financial planner but the fact is even graduates are faced with money choices as in repayment of student loans with starter jobs. They might need some bit of planning and guidance during this transition of life.
3. Wedding bells ringing
You must be thinking what has finance to do with you getting married. But it has a lot to do as combining finances can be complicated of you haven’t talked about it before. So before the big day you must discuss the same with your partner especially when either of you have some pre-existing financial obligations.
4. Arrival of a new member
The news of baby on board brings immense happiness in the family and planning for welcoming the baby starts months ago. But along with this planning you also need to do some bit of financial planning as there’s one more member in the family whom you’ll have to take care of. If that also starts months ago like the welcome planning nothing will bother once the baby arrives.
5. You got an Inheritance
If you’ve got an inheritance from your parents or may be grandparents whether by way of an immovable asset or movable property (money or financial instruments), don’t procrastinate discussing it with your financial advisor. You need a professional to help you figure out how you can use it to the best of your interest.
6. Opportunity to buy a vacation home
Real Estate purchase in our country are mostly a result of the emotional decisions that we take because it looks like too hot of a deal that you cannot resist and also because your friends and relatives are buying. And when it comes to buying a vacation home which looks like a perfect destination for an escape every year, it’s really hard to resist. A financial planner and not a real estate agent can tell you what to consider before buying it.