Many people who find themselves in financial difficulty could have avoided it with a bit more attention to financial planning. They find themselves unprepared for everything that life throws at them.
This is especially important for business owners who need to consider the way their personal finances impact the company. Below are three common life events that you need to keep in mind when planning for your financial future:
Marriage
Yes, marriage itself can get very expensive, but financial planning means more than just planning for the ceremony. Married life is far different than being single. You and your spouse will deal with things like buying a home, deciding who should be in charge of the bills and considering life insurance policies.
Children
Did you know that it costs $233,610 to raise a child until he or she is 17 years old? That projection is for children born in 2015. It can cost thousands just to have the child, but the bills certainly do not stop there.
College
When those children get old enough, they’re likely going to college. Tuition rates just keep rising. It can cost over $100,000 to send a child to a relatively affordable school. Costs can grow vastly higher at more exclusive schools.
These three events are things you need to plan for as far in advance as you can. Do not wait for them to arrive and then try to figure it out. Make sure you know all of the options that you have and how to get your finances ready. Planning in advance helps protect your company and your estate. It can even help you start working toward successful estate planning to pass your wealth on to those children.