Three Crucial Times to Check On Your Finances

Staying on top of your finances is a responsibility that you have take seriously as soon as you can. Many people do it once they have their own job and that’s fine because by this time, you should have your own savings. It is also ideal that you have investments. You could go into debt for things such as student or car loans. You would also have to think of the future by setting up a retirement fund. In all honesty, it’s a rather complicated process to ensure that you are financially stable. It is recommended that you have regular checkups to your finances. However, we have listed down the three most crucial times that you would need to update your finances outside of your regular finance checks.

Marriage, Divorce, and Death of a Spouse

The first major event that you will have in life as an adult, besides landing your first job or establishing your means of living, is getting married. While this means that you are spending the rest of your life with the person you love most, it also means that you are entering a new financial responsibility.

Unfortunately, checking up on your finances is also true for couples who want to get a divorce or when one spouse dies. In all occasions, you must take into consideration the fact that your finances during this time is not solely yours. Laws and jurisdictions will apply.

Having Children

Adding a new member to your family is an exciting time of your life. This is when you’ll start to seriously think of the future. Whether you’ll be having an offspring or adopting or creating a blended family, having children is something that will affect your finances drastically.

The reason behind this is because it’s no joke raising a child. An estimated $250,000 is required to adequately provide the basic need of a child until he or she reaches 17. This is according to the US Department of Agriculture who based their computations using the income of an average couple whose child is born on 2015. Check your finances and adjust them accordingly. You may need to create a budget and research on the different laws that apply to a family.

Getting a job, Changing Careers, and Retirement

Most of our lives are dependent on having a job which can provide the needs of yourself and your family. This is why major events regarding your career is a pivotal point to check on your finances.

The first thing that you’ll have to regard, of course, is getting your first job. This is the time where you would be setting up your finances. You’ll have to allocate earnings to daily cost of living, bills, savings, and if you still have enough, investments.

The next time that your career will affect your finances is when you get promoted or when you lose your job. For promotions, you would just simply increase savings or add investments or do whatever it is that you want. However, when you lose a job, it can be stressful. Check your finances with your financial advisor in order to properly manage them while in transition to your next job.

The last event concerning your career is retirement. Once you’ve decided that it’s time to enjoy your hard labor, it’s also time to check on your finances to make sure you have enough to last you for the rest of your days.

Checking on your finances has to be a regular things because if you have it controlled there, chances are, you have it controlled for all the other aspects of your life.