Are you having a baby or maybe getting married? Regardless of what big event you have coming up in 2020, you need to be financially prepared. Saving the right amount of money can be much easier said than done and might be a little overwhelming (to say the least). In this article, we will go over a few basics and supply you with a few general costs to take into account for a variety of exciting life events.
New Family Member
- Groceries – expenses like diapers, baby food/formula, and various medications will quickly add up.
- Housing – As your new family member grows you may need more space.
- Transportation – For the next 18 years you will want to make sure you have a safer and/or more reliable vehicle; don’t forget the gas.
- Medical and Life Insurance – Larger monthly/annual insurance premiums, doctor visits, hospital stays and co-pays may impact your budget. You will also want to consider life insurance options so that your family will be cared for in case something happens.
- Childcare – Depending on where you live and what demands your family will need, childcare is a steep financial cost you will need to factor in.
- Emergency savings – With a new baby you will most definitely need to start (if you haven’t already) putting money away for emergencies. Whether the emergency is an illness, educational expense, or even a household expense you need to be prepared.
Getting Married
- Budget – List out both of your reoccurring monthly incomes and expenses. Start a healthy tracking system.
- Bank Accounts – You will want to have a discussion with your soon to be partner about having a joint account or keeping them separate. There are pros and cons to having a joint account. Fewer fees and simpler accounting are just a few of the benefits.
- Insurance – Whether it’s auto, health, or home insurance you both will have to discuss if having a family plan or two single plans more beneficial? You will definitely want to do analysis for all scenarios and options.
- Retirement plans/IRAs – Both you and your new partner will want to discuss how to take advantage of all the retirement options. The earlier you start saving for retirement, the better!
- Credit cards – Sometimes this can be a harder discussion, if one of you has poor credit, it can drag down the other’s credit score however this is an important discussion for both of you to have. A huge part of your discussion should include understanding the reason of your soon to be spouse’s debt.
Life happens and we wouldn’t want it any other way, but you want to make sure that you and your family are prepared for whatever life events happen. Our best bottom line advice is to always do your research; knowledge truly is power.