4 Large Purchases to Plan for Ahead of Time
Monday, November 25, 2019, 6:00 AM | Leave Comment
Some of life’s milestones usually involve large purchases. Planning for large purchases makes the process less stressful and more affordable.
While some people plan for these events on their own, others will utilize a financial planner to help them plan and prepare for them.
Here are four large purchases that should be planned for ahead of time:
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Buying a Home
This is probably the most expensive item a person purchases in his or her own lifetime so planning is necessary. Saving money for the down payment, obtaining bank financing, and understanding the amount and duration of your home loan are as important as the type of home and amenities you select.
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Buying a Car
If you have the cash to purchase the car and require no financing, you are at an advantage. You avoid the financing and monthly payment cycle, and you will probably make the most responsible selection because the money is coming from your pocket. However, financing is available and necessary for many to purchase a car. Part of your planning should be to shop around for the best financing deal because it may not be the one offered by the dealer from whom you are purchasing the car.
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Financing a Life Event
According to Wild Tales, planning ahead for a family vacation allows you to find the best deals within your budget.
But that is not the only life event that we believe should be planned for financially, Forbes estimates that the average cost of weddings in 2015 was $32,000. It is no longer realistic for the brides’ parents to pick up those expenses so couples need to plan ahead so they do not start their married lives together in debt.
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Financing a Child’s College Costs
Everyone knows college costs are climbing at exorbitant rates, and The Federal Reserve estimates that the average amount of student loan debt is approximately $33,000. Quite simply, planning ahead preferably from the time your child is born gives you 18 years to save for this large investment. The earlier you start saving, the more money you will save. Because there are a variety of investment and savings plans available to parents, meeting with a trusted financial planner as early as possible can help you figure out the best savings plan for your family.
Planning ahead for these significant purchases makes them less daunting when the time comes to pay for them.
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