Financial planning for the biggest moments of your life ~ The International Finance

Monday, 11 December 2017

Financial planning for the biggest moments of your life

In this day and age you are always going to get some major moments in your life – they will either be happy (marriage, childbirth etc.) or sad (death in family), and expected or unexpected. No matter what, you need to be prepared, and financially so, for these huge moments in your life. These funds are also known as milestone funds and as such you need to plan well for these expenses. There are a few steps that you can take so that you can be financially prepared to meet these situations in a better manner in life.

Working backward from your goal

The first thing that you need to decide in this respect is how much you are going to need in order to fulfill your milestone expenses. You should always start off with the ones that you are expecting to happen in your life such as graduation, holidays, birthdays, weddings, and anniversaries that are important to you. You need to take into account even the smallest factors such as the costs you would incur in traveling to the locations where these events are supposed to happen. Always tally the costs that you are able to expect in a reasonable manner.

Using a savings account

You can do far worse than starting a separate savings account that can be used as your milestone fund. It could be different from your emergency fund and other regular savings for that matter. Your milestone fund is supposed to cover for the money that you are going to spend for things that are supposed to benefit you from spiritual and emotional points of view. Things such as emergency fund and normal savings are supposed to take care of your financial well being. Your accounts and objectives need to be separate from each other.

Incorporating it in your budget

You can start to incorporate these savings in your budget. In this case you need to start small and then you can progress even as time flows by. You can start off by funding for your retirement. The same approach should also be taken for your savings and emergency funds. There is no need to put in a lump sum amount of money in said account straightaway. You can always start with small amounts such as 100 dollars. It would be better for you if you were able to automate the savings. You can get this done in any way that you want.

Speaking with professionals

It is very important that you have a clear idea regarding how the milestone fund may fit into your long term financial plans. It is highly possible that you may have already lined up a number of savings accounts. You need to look at all of them in conjunction with the financial plan that you have as of now. In case you have questions it is better to get them sorted with the help of a professional financial advisor. The best part of a milestone fund is that it can ensure that you have the money when you need it.

About Author

Amit Singh is a founder of he share his immense knowledge of Finance in this blog.


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