Financing Major Life Events: Tips and Advice

Saving money growth. Photo by 401kcalculator.org. License: CC BY-SA 2.0.

When it comes to major life events, whether you want to or not, you have to think about the money aspect. Many times, that means figuring out how to finance various events, situations, or activities. What you don’t want to do is try to figure out financing after you’ve already made a significant decision.

What are some situations that come to mind? You have to figure out how to finance your house. You need to understand how to get the money together for a vehicle like a car or a motorcycle. Funding your education is a major deal along your personal timeline. And, if you plan on starting a business, where do you think that money comes from?

Financing Your House

When you’re starting a family, one of your primary priorities is going to be your living situation. And unless you have a massive stash of cash just laying around, that means you have to finance your house. Maybe you have enough money for a down payment, and then you have to figure out how much mortgage you can afford on a month-to-month basis. Factor in taxes that you owe, you begin to understand why thinking as far ahead as possible is such a good idea.

Financing a Motorcycle

You’re probably going to need some vehicle to get around in your daily life, especially if you don’t live in an urban area. That means you may have to figure out how to get the cash together to buy a car, or figure out how to do something like financing a motorcycle. Ideally, you don’t want to put yourself in a position where you have to pay more money than you have, because going into debt to get a vehicle that you don’t need is a bad idea any way you look at it.

Financing Your Education

Do you know how much college costs these days? The number is absurd. However, one of the quickest ways to make more money in your career is to get a college education. That means you have to figure out how to get that cash to pay for your schooling. It may mean that you have to get some substantial loans at the beginning of your collegiate experience, and then you have to figure out how to pay it back as quickly as possible.

Financing Your Business

A final item that you should consider when it comes to finances is how to get a business started out. If you have a great idea, you can form a company around that concept. But, how likely is it that you have extra money just laying around for all of the initial costs? The chances are that cash is not available, which is why you need to get loans from various institutions or people to get you past that first hurdle.

Anna Johansson is a freelance writer, researcher, and business consultant from Olympia, WA. A columnist for Entrepreneur.com, iMediaConnection.com and more. Anna specializes in entrepreneurship, technology, and social media trends. You can follow her through the buttons below.