It's me again, The Unfussy Scholar.
This blog post is a continuation of the 4 stages of the financial planning series where I discuss in more detail each of the stages.
In the last post, I talked about the Getting Started stage in more detail. For this one, I'll focus more on the Moving Up stage.
The moving-up stage is the next life stage of financial planning. This is the stage where you will start to take on more responsibilities.
You are no longer focusing on just yourself here. You might be in the process of settling down or are already married and have kids.
This is also the stage where you are likely more established in your career, and thus are also earning more. So, you will be more than capable of taking on more responsibilities and building your life with your partner/spouse.
If you're not planning on starting a family, this can also be the stage where you start to take care of your parents financially since they're too old to work.
Of course, not everyone will likely go through this stage. You can still focus on yourself if that's what you plan. But for most, this is the next step.
With more money and more responsibilities, your focus here will be more on family than yourself.
1. Get Insurance
If you don't have insurance yet, you need to get one. You need to protect yourself, especially if you're the breadwinner or the main source of income for the household.
You want to make sure that your family won't be in any financial burden when something happens to you. So, protecting yourself is important here.
Get both life and health insurance, if the budget allows. This will protect you both from death or any major health issues.
Don't try to get as many claims as you can since the higher the claims the higher the premiums. Though having high claims for your beneficiaries is good, make sure you can afford the premiums.
You don't want to jeopardize other financial obligations just to be able to pay your insurance. Make sure your insurance premiums will still fit your budget.
2. Prepare for Kids' Education
Another thing you need to focus on is preparing for your kids'/future kids' education. School will cost money, regardless of where you are.
And if you want to send your kids to good schools, expect it to be more expensive. So, preparing for it early is important.
You want to have as much time as you possibly can to save/invest money that you will soon use for your kids' education. This is even more important if you also plan to support them in college.
There are other ways that your kids can get a good education without breaking the bank. Most schools provide scholarships and grants.
But it will be unwise to bank on these things. It would be great if your kid could get one, but it's best that you still prepare.
If your kid happens to get a scholarship or assistance, then you can just continue to save/invest that money and give it later as a graduation gift to help them get started with their own lives.
3. Upgrade Milestones
This stage is also where you start upgrading a bit of your life. This can include getting a bigger condo or home, a bigger car, and so on.
This is important, especially if you happen to live in a space that's too small for a family or use a car not family-friendly.
Of course, this is not as important as the two financial focuses above. So, you will only think of doing this once you have the ones above covered.
But still think of this as an important aspect of your life. You want to make sure your family is comfortable, so include upgrading your life as part of your focus here.
4. Don't Forget to Live Life
Lastly, make sure you still live life with your family. It's important to be financially responsible and make sure everything is in order.
But it's also important that you and your family live your life, especially if you have kids. You want your kids to be able to enjoy life as much as possible.
So, don't forget to still have fun, do things with your kids, and live your life. Being financially prepared is the priority, but don't disregard living life.
Make sure to have a fund that you can use for fun activities with your family. It doesn't have to be grand or expensive.
Many fun activities don't usually cost an arm and a leg. Just make sure your family, especially your kids, will still have a fun childhood.
Priorities change as you move to different stages in your life. And as your priorities change, your financial priorities also change.
And as you start to build your family, most of your financial goals will start to revolve around them. Make sure you are properly prepared for it, while still being able to live your life.
"Money is necessary - both to support a family and to advance causes one believes in" - Coretta Scott King.
Keep on Learning
The Unfussy Scholar
P.S. Please share this post with a friend or family if you enjoyed what you learned here :-)
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