There always comes a time when we need to splurge on a special event in our lives. Whether it be your prom, graduation, wedding or a baby, special life events require special financial attention. Saving for such moments mean you have to have a long term plan especially if you don’t want it to cost you in the long run.
I just got hired, what now?
It’s a big milestone in your life to get your first job. Your first job can help you determine many factors such as moving out. A common mistake people usually make after their first job is waiting a couple of years before setting a budget and saving. However it’s integral to have a budget in place considering being an adult means paying your own bills and managing your lifestyle.
Besides setting a budget, you also need to keep your long term plans in mind. Picture how you wish to live in the next five years and see if your financial plan reflects that image. Also, at this point, keep living costs to the minimum as you can save more with less responsibilities such as taking care of a family.
If you are moving countries for your first job ensure that your salary will be enough to support you. Each city has a different cost of living so do your research and compare your income to the cost of living there.
Here comes the bride
It is that special time in your life where you are ready to settle down. Taking this big step requires a lot of thought and planning. Depending on how lavish you want your wedding, you have to budget accordingly. Budgeting will also help your determine how soon you can afford to have your wedding.
Set a priority list within your budget, highlighting aspects that are most important to you and your partner. This way you can afford to spend less on other aspects of the wedding. Also set a deadline for your savings goal and if you realize that you aren’t saving enough, see where you can cut back on regular spending.
Another option is getting a personal loan. Make sure you get a loan which you can afford to pay back and decide on how much each partner is going to contribute towards the loan before getting one. Compare all your loan options and decide exactly how much you need based on your budget and savings. Try not to get carried away because the higher the amount the longer you will be paying it off with profit to the bank.
Besides conventional loans, look into Islamic loans available in the market. Islamic products usually offer loans specific to the event. For example Al Rajhi Personal finance for Saudis Nationals offers finances specifically for home renovation, weddings and child’s education.
Having a baby
Having a child requires well thought out planning as it’s a huge responsibility. Therefore make sure that you have enough savings to afford all the necessities. Obviously having children means increase in expenses as you now have to worry about toys, back to school items, school fees, college funds and much more. Therefore consider a savings account with high profit rates specifically to save for child’s future. You can even throw a baby shower to cover all the items needed before expecting a baby.
At the end of the day, big life events means plan ahead, save and spend less. This way you can ensure that you don’t spend more than necessary and are able to enjoy the milestone in your life, stress free from financial woes.