Life Events That Impact Your Financial Plan In A Big Way

Life Events That Impact Your Financial Plan In A Big Way

July 10, 2023

Life is a crazy rollercoaster, isn't it? One moment you're single and carefree, and the next thing you know, you're getting married, having a baby, or buying a home. These major life events can be super exciting, but they also bring along some financial changes and decisions that you shouldn't ignore. That's where we, the Living Well Team, come in!

When your life takes a turn, it's essential to make sure your finances are keeping up with your goals, values, and needs. That's why we always recommend conducting a financial review when these situations arise. Take a step back, evaluate your current situation, and look out for any new expenses or adjustments you need to make. Trust us, being prepared is the way to go!

Let's start with marriage. Ah, love is in the air! Combining your lives means combining your finances too. Splitting costs and sharing expenses can save you some serious cash, but you might have to tweak your budget to accommodate new financial responsibilities. And let's not forget about the importance of agreeing on financial priorities to maintain household harmony. Money matters, folks!

Now, let's talk about babies. Oh, the joy (and sleepless nights) they bring! Having a little one means adjusting your budget to accommodate additional expenses like health insurance and childcare. And depending on your situation, there might be a temporary or long-term decrease in income if you or your spouse take unpaid leave. Oh, and don't worry about starting to save for college; it's never too early to think about it. Time flies, so plan ahead!

Lastly, we have the exciting adventure ofbuying a home. Get ready for that mortgage payment, my friend—it's going to be a biggie! When you dive into homeownership, it's time for a thorough budget review. You want to make sure you're well-prepared to handle the financial responsibilities that come with having your very own slice of paradise.

For any of these major life events, there are a few additional financial and legal needs you'll want to consider. Let's run through them together:

First up, insurance! Take a look at your health insurance situation—between you and your spouse, who has the better coverage? Can one of you be added to the other's policy? And once that baby arrives, it's wise to think about life insurance to protect your family in case anything unexpected happens. Oh, and don't forget about homeowner's insurance! Shop around, get multiple quotes, and compare. You'll want the best coverage at the best price.

Next on the list: beneficiaries. Time for a little review session! Go through all your financial accounts—checking, savings, retirement, investments—and insurance policies. Make sure the beneficiary information is up to date and accurate. It's all about taking care of your loved ones and ensuring that everything goes smoothly if anything were to happen.

And last but certainly not least, let's talk about wills and trusts. They may not be the most exciting things to think about, but they're crucial once you have a family or own assets like a home. Wills and trusts are legal documents that express your wishes regarding the distribution of your assets. They provide that extra peace of mind and ensure your loved ones are taken care of when you're no longer around.

Life is an adventure, my friend, and it's full of surprises. But with a little discipline, flexibility, and preparation, you can tackle anything that comes your way. We're here to help you navigate through the financial side of these major life events. So, if you have one of them on the horizon, reach out to our office and schedule some time for a review. We've got your back!