The 5 Most Costly Milestones in Life and How to Deal with Them Better

by Mike on January 11, 2017

The 5 Most Costly Milestones in Life and How to Deal with Them Better

There are certain things that most of us experience during the course of our lives. And some of these things are fantastic and deserve to be celebrated by everyone. But that doesn’t mean that they can’t also act as debt traps. Here are five of the most costly milestones in life and how you can deal with them in a financially sensible way.

1. Learning to Drive and Buying Your First Car

Learning to drive can be so expensive, especially if you don’t get the hang of it straight away. Those lessons don’t come cheap. And the more of them you take, the more you end up paying. Making sure that you apply yourself properly and make the most of every minute with your instructor is key. If you can learn quickly, you can pass quickly and save money. But only take the test when you think you’re ready for it. Re-tests can be costly too.

2. Getting Married

Marriage is one of those occasions that you hope only happens once, even if for many people it doesn’t. Unfortunately, many people start married life in debt as a result of the cost of getting married. It’s not just about all the expense that goes into making the big day perfect. You also have to think about the honeymoon and how much that will cost. If you can keep things simple and seek out the cheap options, you can begin married life in the right way, free from debt.

3. Moving Into a New Home

Moving house, whether it’s for the first time for the fifth, is always expensive. However, some people do make it more expensive than it needs to be by not taking on the challenge in the right way. First of all, think about the moving process. If you can find good movers, you can avoid damaged items which cost you money. And you should also save up and wait a little longer so you can get a mortgage rate that is more suitable for you.

4. Starting a Family

Starting a family is an ambition for many or even most couples. But once those kids arrive, the cost is difficult to control. Setting monthly budgets and cutting down on other areas of your spending is essential when you have children. You can’t expect to carry on with your old lifestyle when you also have children to take care of. This is something many parents try to do, but they soon find out that it’s not at all sustainable.

5. Retiring from Work

Retirement is looked forward to by many employees. The thought of not having to go to work each day can seem like a massive relief and an opportunity to do new things. But it can spell financial disaster for you if you’re not prepared for it. You will need a savings pot to dip into when necessary. You should also work out how much money you will have to live on when you start drawing your pension.

 

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