While no one can predict the future, there are things that we can do to ensure it’s less stressful. If you’re someone who hates planning, you don’t have to worry about planning every little detail of your life.
Instead, plan the things that are important to your future, and wellbeing.
For example, if you’re someone who wants to one day be a homeowner, you can plan to ensure that you get the home of your dreams.
Here are the top things that you should plan for in the future.
Paying off Debts
Debt can have a negative impact on your life in the present, and in the future. Quickly paying off any debt you might have can ensure that you’re able to obtain the material things you want in life, such as a new car or home loan. Remember, debts show lenders that you are not responsible with your money and have a history of not paying other lenders back on time. This can affect your ability to get the loans necessary for improving your lifestyle.
One way to start paying off debt is to set aside a small amount of each paycheck to go toward the amount you owe. If you’re someone who has a shopping habit, try to curb this lifestyle and take control of your finances, by using the money you’re saving to cover any debt you’ve collected.
Opening a Savings Account
A savings account is a great way to ensure that you have money saved for emergencies and your goals. These accounts also accrue interest over time, which means that you can passively make money. Over time, the more you have in your savings account, the more additional cash you’ll earn with interest, so it’s a good idea to grow that account as much as possible.
You can use your savings account for just about anything, but make sure that it has a purpose. If your goal is to one day own a home, then make sure that you only access your savings account when you’re ready to spend it on a down payment.
Don’t worry; you can have multiple savings accounts for different purposes. Doing so makes it easier for you to keep track of which account is for which purpose.
Marriage
Having a wedding costs money- and sometimes, a lot more than you realize. In fact, weddings are so expensive that many people are forced to take out personal loans just to pay for them. Instead of putting yourself in more debt, you can save up for your wedding and forgo taking out a loan, or only need to borrow a small amount.
Buying a House
We’ve talked about buying a house a lot already, because it’s ultimately a common goal that people share. Being a homeowner isn’t cheap, no matter where you live. In order to get a loan and pay as little as possible over the life of the loan through your mortgage each month, you should aim to put down at least 20% of the home price.
Unfortunately, buying a home this way is not always possible. You can still purchase a home, but if you get a conventional loan, you’ll have to pay for private mortgage insurance in order to assure your lender that you can afford to pay back the loan.
Relocation
Sometimes our lives take us to new places. While you can’t always plan for a relocation ahead of time, you should be prepared that one might come eventually. If you’re being relocated through your job, then your employer might pay for all or at least some of the costs, but you should aim to make sure that you have enough to relocate on your own to ensure a stress-free move.
In terms of preparation, while you shouldn’t keep all of your stuff in suitcases and boxes, you should be prepared for a relocation as soon as the possibility arises. A good way to make sure you’re ready is to prepare a checklist ahead of time.
Retirement
No one wants to work forever, which is why a retirement fund is important. Your employer may offer a 401(k), or you can get an IRA to begin saving for your future. While planning so far ahead can be difficult, it’s worthwhile to set aside a small amount of each of your paychecks to put towards your retirement.
A retirement account should be able to fund at least 20-30 years of your post-work life, so try to calculate your living expenses and multiply it by 20 to determine just how much money you’ll need in your account before you can comfortably retire.
End of Life
End of life planning is never fun, as it brings a reality to the fact that one day you’ll no longer be here. However, end-of-life planning is a necessity because it ensures that your family, especially your children, are secure. End-of-life planning can include everything from learning how to write a will, to hiring a lawyer to make sure your assets will be distributed as you wish.
One of the most significant benefits of end-of-life planning is for those who want to ensure the protection and safety of their children and/or pets. By naming a guardian for your child or children, you can ensure that they’ll always have a loving caretaker in the event of your death.
Additionally, you can name a guardian for your pet and name someone who would be responsible for ensuring their financial needs are met. Your pet comes with expenses such as veterinarian visits and food, so it’s important that you plan for their future too.
Being a guardian of children and pets isn’t something that people take lightly. Before you name the guardian, make sure that the person you choose accepts the responsibility and knows all of the duties they’ll have to take on.