Most of us work for our money, and any savings we accrue are a hard-earned testament to frugality, discipline, and proper planning. What that means is that we should always think carefully before entering into a situation that could drain our precious nest egg. Unfortunately, life sometimes has other ideas. Although, just because you have a significant life event in the foreseeable future, it doesn’t mean you have to wipe your savings to zero. A subject you can read more about in the post below.
Buying a new car
Now don’t get me wrong, when I say ‘new car’, I don’t mean a brand new one fresh off the lot. In fact, buying any vehicle, even a used one can be a costly experience. However, if you are savvy about things, you will be able to satisfy your transportation needs without going broke.
For example, instead of buying the vehicle that you want because of its looks or the gadgets it comes with, it can be helpful to lower your expectations a little. After all, what really matters when buying a car are things like what condition it is in, and whether it has a reasonable fuel efficiency rate.
In fact, if you choose to use practical parameters instead of desires for your purchase, you can end up saving a whole heap of money. All with minimal effort indeed.
Paying your tax
Next up a life event that can definitely mess with your savings when it comes to tax time. In fact, if you get hit with an unexpected bill, your savings can go down to zero instantly. The good news is that there are some tactics you can use here to minimize the damage that a tax bill you can’t pay can do.
The first is to contact the tax office and explain your situation to them. Something that means they may consider offering you a staggered payment plan. Alternatively, you may be able to liquidate one of your assets to cover the majority of the bill. Especially if you have property, a vehicle, or even a valuable piece of jewelry to hand. An action that can prevent you from dipping into your savings funds unnecessarily.
Divorce can be a tough time, emotionally, and financially. In fact, surviving a divorce with your savings, and any other economic assets intact can be a real challenge.
Of course, what can really help here is to be able to separate the emotional side of things, from the issues with money. Then you will be able to take a much more objective view of the situations and ensure the financial position of parties on both sides are taken care of fairly.
However, this can be incredibly difficult to do alone. That is why many people choose to use the services of a professional such as the ones at schoenberg family law group can offer. In fact, by making use of a divorce law specialist, you can ensure that your assets are protected. You can also avoid any issues or loopholes in the law that could endanger your financial well being. Additionally, you will get the benefit of not having to deal with this very stressful situation yourself directly. This being, something that can be worth a great deal in an emotional sense.
Welcoming a new baby into the family
Joy! That is how most people greet the arrival of a new baby. Although it is always wise to remember that there will be a financial impact when the little ones arrive as well.
In fact, the financial strain can start well before the baby is born. What with the medial bills involved and all of the supplies that need to be purchased before the birth. Something that can make it very easy to dip into your savings and deplete them without even really thinking about it.
The good news here is that this doesn’t have to be the case. In fact, there are two approaches you can use that can help you protect your savings and still ensure you have everything the little one needs by the time they arrive.
The first is to be realistic about the baby’s needs and only invest in items that you are 100% sure you will use. After all, if you find you need something once Baby has arrived, those items will still be available in shops and online to buy.
Additionally, it can be beneficial to separate off an amount that you designate to spend only on baby stuff. Then each time you buy something, it can come from this budget rather than out of your savings. Something that will ensure your nest egg remains separate, and that can also help you keep a much better grasp on what you have spent so far, and what is left.
Buying a house
Finally, as you probably already suspect buying a home is one of the most expensive life events that most of us go through. Of course, this means that when we find ourselves in this situation, our savings are most definitely under threat. In fact, it is not unusual for people to use up all of their nest eggs, and even borrow more to enable them to buy a home.
However, there are some tactics that you can use to minimize the costs involved with buying a home. Something that can help preserve at least some of your savings. One of these is to do as much of the work involved yourself. Thus saving on the professional that would otherwise be involved in these processes.
Also, do not forget that buying a home is a financial decision as well as an emotional one. What that means is that it is crucial that you do not let your heart run away with your head, and your savings!
To that end, be sure to shop around and get a variety of quotes of work and services for your new home. Additionally, do not make the mistake that everything must be perfect for you to be happy. After all, there is nothing wrong with slowly remodeling a property to suit your needs. Something that means you can better stagger the finances involved and therefore, do not have to wipe out your savings account.