As people enter early adulthood, it is likely that being in full-time education is still their major priority. It is estimated that in the US, there are around 20 million young adults in full-time university education. This typically consists of four years of intense study before graduation and entering the world of work. After gaining their first proper full-time job, most adults become increasingly aware that there are certain times or events in adult life that require significant sums of money. It is vital to plan for these occasions so that money can be saved, and less reliance is put on purchases gained through taking out credit. This article describes three key purchases in most adults’ lives that require significant amounts of money.
Weddings
Over the last few decades, the general trend with marriages is that they are happening later in life and are less popular than for previous generations. Today, the average age of married men is 30.4 years old in America and 28.6 years for women. It is a fact that marriages can be an extremely expensive event, and whilst costs vary, it is common for many weddings to cost tens of thousands of dollars. For most people, this amount of money is not readily available, so it makes perfect sense to plan for all related wedding costs. When you have found the partner of your dreams, who you wish to spend the rest of your life with, it can be hugely beneficial to spend a few years living together before having a wedding ceremony and reception. This will give you both time to plan for the wedding and budget for the expected costs. Increasingly, couples are looking for inventive ways to slash the costs of their wedding and there are a few ways in which this can be achieved. One key strategy is to have the wedding ceremony and reception throughout the week, rather than at the weekend, as venues will typically charge less during weekdays.
New Car
Buying a first car or a new car can represent a significant financial outlay. It is of paramount importance to remember that the car you decide to purchase should both fit your needs and your finances. In 2022, many households around the world hold significant levels of personal debt. This is often exacerbated by taking on finance to purchase a new car. It can be a far more beneficial situation to save money every month, so that a car can be bought outright with cash, rather than credit. Many car finance companies charge high levels of APR on loans for vehicles. In addition, consider that any vehicle will depreciate over time and will be worth considerably less when the time comes to sell it and replace it.
First Home
A first home is a purchase that inevitably requires a bank loan and mortgage to fund it. Today, buying a home is a complicated process and it is important to seek professional advice from companies such as Respect Mortgages, which can be found at http://www.respectmortgages.co.uk, to ensure that you find a home that is right for you and your financial situation. Bear in mind that the larger the deposit you can afford to put down on your home, the smaller your monthly mortgage repayments will be. Many websites offer mortgage calculators that allow you to consider your income, capital, and expenditure to understand the amount of monthly repayments that you can comfortably afford.