Savings planning is vital to ensure that you remain financially independent always. In this write-up, we discuss a few important life events that require sound savings planning.
Sometimes, even the most important milestone events in life like getting your dream job, moving to a new country, wedding, birth of a child require careful financial planning. These events may trigger the needs for preparing a new budget, buying an additional insurance cover or guidance from your financial advisor. Here are a few important life events that must inspire you to do some savings planning.
You have got a big raise or a long-awaited promotion at work
We all get a pay raise at some point in life. However, in most cases, such appraisals are small. But, if you get a big raise or a long-awaited promotion that would increase your pay scale, it is indeed a cause for celebration. However, this also means that it is time to do some planning and determine how you can increase your savings for the future. It might also be a good time to start planning for your retirement and building a retirement corpus.
Getting married
Today, many people are getting married in their mid or late 30s. So, if you finally feel ready to tie the knot, it is time to relook at your financial plans. With the added responsibility of your partner, you may have to relook at your investments, and savings plan to ensure that both are financially ready for the new phase in life without facing any financial hassles. It would also be the right time to start saving for your children’s education, etc.
You relocate to a new city
Moving to a new city can be as overwhelming as it can be an exciting prospect. Being able to move to be a new city of your choice can be a reason to celebrate but the challenges it may bring along including the financial ones, is a big reason to deliberate your financial plans.
The city you are moving to may have a different tax rate and a different cost of living. All these can have a significant impact on your finances. Besides, you need to take care of the moving-related expenses. At this juncture, it would help to seek advice from your financial planner on how you can adjust your investments so that you can maintain your current lifestyle without compromising on your long-term financial goals.
You get an inheritance
If you are expecting to get an inheritance from your parents or your grandparents, you may be receiving a lump sum amount. While you may be happy to get the additional wealth, it is the best time to plan your savings well. You must review your current savings and see how you can increase your investments and grow your wealth in the long run.
You can also look at new investment opportunities where you can invest a large sum in lump sum and get valuable returns on the same in the long-run. Investments like NPS and PPF would be a good choice in this regard.
Apart from the above-mentioned life events, you may face other important milestone events like birth of a child, opportunity to buy a new vacation home, getting a new diploma, retirement, etc. You must have a robust savings plan in place for all these events so that you don’t have any financial hassles.