At various points in life — when we tie the knot, purchase a home, or expand our family — we encounter significant costs that demand serious saving efforts.
Covering thousands of dollars at once calls for a different approach than simply skipping your daily coffee for a few weeks.
Keep the following tips in mind as you prepare for high-cost life milestones.
Purchasing a Car
A new vehicle can run anywhere from $20,000 to $55,000, depending on whether you opt for an economy model or a luxury ride. Even a pre-owned car often requires several thousand dollars up front.
These practical steps to save for a car will set you up to buy your next vehicle: determine a reasonable down payment target and account for related costs like taxes, registration and insurance.
Buying a House
Now that’s a major financial moment.
Housing usually takes up a large chunk of most people’s budgets. Saving to actually own a home often means accumulating tens of thousands of dollars up front, not counting the monthly payments that come with a typical 30-year mortgage.
Our tips for saving for a house while you’re still renting are meant to move you closer to homeownership.
Sharing living costs with a roommate can help you stash away more toward a down payment, and qualifying for first-time buyer programs can shrink your initial out-of-pocket expenses.
Getting Married
Recently, the average U.S. wedding cost was nearly $34,000. That’s a hefty sum to spend on a single-day celebration — even one you’ll treasure forever.
To avoid beginning married life under a mountain of debt, we’ve gathered 90 clever ways to cut costs on your dream wedding. Renting your gown or choosing secondhand decor can trim thousands from your budget.
Budget-minded couples can also learn from these frugal partners who pulled off weddings for under $10,000.
Having Children
Children are costly. Seriously costly — potentially six figures, according to the U.S. Department of Agriculture.
While estimates suggest parents may spend more than $200,000 raising a child to adulthood, many first-time parents are blindsided by early expenses like hospital delivery fees, diapers, formula and childcare.
Reduce newborn costs with these 31 strategies for saving on baby expenses and these resourceful approaches to affordable childcare.
As kids grow and activities shift from mommy-and-me classes to competitive sports, continue trimming costs with these 13 ways to lower children’s expenses after the baby years.
Paying for Your Kid’s College Education
Every parent wants to set their child up for success. A college degree can unlock access to higher-paying careers and better long-term prospects.
When it comes to saving for college, early planning offers the greatest benefit. This overview of five common college-saving strategies will help you choose the right path for your family.
Leveraging financial aid can be essential. Be sure to complete the FAFSA each academic year to determine your expected family contribution.
Retiring
Preparing for retirement is another major financial goal that’s smarter to start sooner rather than later. Compound interest provides the biggest advantage the earlier you begin saving.
Estimate how much you’ll need for retirement, learn strategies to grow your nest egg and open a 401(k), IRA or brokerage account if you haven’t already.
If you’re beyond your 20s, 30s or 40s and have little or nothing saved, here’s practical guidance on catching up with retirement contributions.
Jenna Hart is a staff writer at Savinly.
