We live in such a fast-paced world that it's almost impossible to think ahead of time and plan for the future. Yes, it's important to live in the moment and 'be present' for now, but without adequate financial planning, you're potentially putting your future at risk.
Saving money for retirement is one of the most important financial goals you should have in life, yet so many fail to achieve this goal, probably because it's not easy to think so far down the road. This is until they are faced with an unexpected expense that they don't have the money for.
Here are three major goals that you might not be saving for, and why you should start planning for them ASAP.
While retirement is a pretty big goal that shouldn't be neglected, there are plenty of other expenses that can pop up from time to time that we aren't prepared for.
Unlike retirement, not all of these expenses are 20 or 30 years down the line, so planning for them should be one of your more immediate goals.
Your mid-term goals account for the things that you might not need immediately or a few months down the line. In fact, these are the expenses that you'll incur in the years between now and your retirement age.
What do you see yourself spending 10 or 15 years down the line? If you're planning to or already have kids, you need to think about their higher education. Or if you're planning to get a house and need to save for the downpayment, it might help to start saving now to save you from stress later on.
Home Expenses After Paying for Morgage
Buying a property is a pretty big goal for most Americans, but the down payment isn't the only expense you will incur when buying your dream house. You need to think about the costs that will come after you take out the mortgage and get the keys to an empty house.
Some of these expenses include buying furniture, house supplies, and other miscellaneous costs that you probably didn't take into account when applying for a mortgage.
We all are pretty good at preparing for expenses that we expect every month like rent, utilities, and other subscriptions but there are several other expenses that you expect at some point during the year but don't really know when.
Some of these irregular payments may be related to car maintenance or other membership fees and subscriptions that you pay for every year.