Do you know what are the 5 expensive personal finance goals/targets in your life that you can’t avoid to pay for? Whatever is your earning potential, in this article I will talk about those 5 mandatory goals in everyone’s life for which we are trying our level best to earn more & save more. In fact everyone of us are earning money to achieve those 5 expensive things smoothly only as per the income capacity. Anyway without spending much time, let’s discover those items one by one here.
Top 5 Expensive Financial Targets To Achieve, There is no escape
When I talk about life I assume the population who has a family or some liability for which he/she is earning daily. Life is a big journey and one can’t expect what is coming next. But for a typical life-cycle on earth, one can define certain activities which are almost common in nature irrespective of caste, language, color or country. Here are the top 5 expenses every family have to deal with and plan finances accordingly to overcome them smoothly. If you want or don’t want, one have to spend for these highly expensive goals.
Education Cost: I have to agree the fact that education is one of the most unavoidable expenditure of every family. I know how much my father spend for me when I went to school 25 years back. But right now my kid started his schooling journey from nursery, in one of the reputed school chain India with a school fee which is even 2 times higher than my entire college education fee. And although there are options where I could send my kid with less cost, but I can’t able to do that as I can afford that education expense and can’t compromise on anything when it matters to my kids future, like every father do.
Marriage: I am bothered with the first point as I am a married man. Over the period of time, since my marriage I have discovered how much people are spending in marriage in our country. In fact in many cases people are bound to pay such amount, in fact even they can’t afford it to maintain the social status. Anyway the point here is marriage is a very big planned expenditure in our personal finance planning and we are saving from the beginning to handle such expenditure. Sometimes I feel proud of the new generation or the people who love to get married in temples or participate in Samuhik Vivah (mass social marriage) and enjoy the main purpose rather then spending money.
Buying a House: Like many people when I have joined my job and started my family journey back in 2007, very soon me & my wife understand that we need to run after our biggest dream which is to buy a home. We started accumulating money for that and finally bought our dream home in 2011 with the help of a home loan. It’s been 5 years I am still repaying the home loan and now I can see that I have spend a huge amount of my earning behind my dream, which is not unfair also. Anyway the point here is you can’t avoid this dream also till it achieved.
Family Health: Health is a very major factor we all are taking care of at home. But these days health care doesn’t mean only how much your care for your love one by taking care of good food, lifestyle, good habit home etc. We have to be ready to bear the medical expenses as well. Health care costs has been increased like anything in last few years and now a days one have to spend thousands for just simple doctors consultation. And when it comes to treat a major ailment with a surgery you can’t imagine how much money is enough. Personally I have seen 5 major surgery in my family and I have to say thanks to the health insurance policy who save my life. So the point here is, start putting money for health insurance for your entire family and this is a mandatory expenditure you can’t avoid.
Retirement: The most discussed topic in recent times. Gone are the days when one can complete a salaried job till 60 years and then get fixed pension amount till die. Now a days there is no guarantee that one can continue their job till 60 years and on top of that the pension concept is no more. You have to arrange money for your living till you die by yourself only. E.g. If you can work till the age of 50 years only, you have to make sure that you have to accumulate enough money till 50 years so that you can live a life after that till you die. That means, start saving money for retirement without failing from your starting day of job or earning.
I know these are all mandatory expenditures and there are many more which may come in luxury but an individual can’t avoid to dream about those. Whatever is my financial condition, I tried my level best to manage my finances and some how buy a car as per my choice. There are many such dreams of family that need to taken care as well besides this mandatory expense.
So, the bottom of the story is start saving to create long term wealth, try to build some emergency fund to finance your desires. Now its time to know what do you think about this topic, by writing a simple comment below.