When you talk about the big things in life such as going on a vacation or getting ready to purchase a second home, it will definitely affect your bank account. Without sacrificing your daily living expenses and sending your bank account into the red, there are some ways that you can save money without having to give up other important things along the way. Here are just a few examples.
Moving Across the Country
Did you or your spouse receive a big job promotion? If so, one of the first steps in the moving process is scoping out places to live and school districts in and around the area you’ll be moving to. If you’re lucky, your new employer will pay all or most of your moving expenses making it an affordable transition. But that isn’t always the case, especially if you’re changing companies altogether. If you need to come up with the money to move all of your belongings, you’ll need to start saving. Start with contacting a reputable moving company like Allied Van Lines. They will be able to cover many of the bases of your moving experience including renting you the proper trucks and trailers as well as packing up your belongings, shipping and delivering them to your new destination. Avoid dipping into your savings reserve by doing a lot of things yourself, such as packing and cleaning, but keep in mind the convenience and stress level of a move—especially with kids. Having the extra help will save time and the hassle of a cross-country move in the long run.
Purchasing a Vacation Home
Have you been thinking about where you’re going to spend your retirement years? If a vacation home on the lake or in the mountains is something you’ve been dreaming of, now is the time to start putting your plan into motion. Ideally, you should have your existing home mortgage paid off or close to being paid off before acquiring a new second mortgage. If you have enough money saved up, that’s great—you can use that to purchase the home. But if it depletes your retirement or your emergency savings fund, it’s probably not a good idea. Start saving now and deposit funds into a good interest-bearing account with a decent return. Even if you have to take out another mortgage for the vacation home, you can use the savings you’ve been building as a decent down payment. This will reduce the mortgage amount and help you pay off the loan quicker. Always choose a fixed rate mortgage, preferably one that is only for 15 years. This will also help to pay it off faster and be a good investment in the long run.
Taking a Much Needed Family Vacation
Another major life event is a family vacation. Even spending a night or two at the campground costs money that you have to save up for. But what about a memorable family vacation to accommodate four people? Airfare, hotel, stays at a theme park, food and transportation can rack up fast. One way to avoid overspending on your vacation is to finance the vacation on a special incentive credit card. This could be one that offers 0 percent interest for up to 12 months. This allows you to get the instant gratification you need for a wonderful family vacation while not taking away from your regular household bills. While you can also save up for a vacation instead of putting it on a credit card, you can take advantage of the travel miles and perks that often come with a travel credit card.
Your oldest daughter just got engaged. The good news is she gets to plan the wedding of her dreams, the bad news is, it’s in six months and you have to pay for it. Whether its $5,000 or $50,000, coming up with ways to make it fit into your monthly budget can be daunting. You can start by asking your daughter if there is any way you can supplement any of the expenses or items for something cheaper. For example, choosing a venue on a weeknight as opposed to a weekend to help cut costs down a bit. Creating and sticking to a budget can drastically slash the costs of the wedding event.
No matter what life throws at you, one thing’s for certain, it all costs money. Saving for unforeseen or planned expenses is the best way to avoid financing large life events.
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