As you all know that money plays a very important role in everyone's life so we should learn about money management to face the emergencies & to make our life financially healthy.
A solid plan can actually play a big role in building
financial security for you
and your loved ones. You may need to give your finances extra consideration upon reaching the following milestones:
First Job. When you obtain your first “real” job
it’s likely that you will be presented with employer-sponsored
retirement savings plans. It is never too soon to begin saving for
retirement, and taking advantage of your employer’s retirement savings
plan as soon as possible will give your account the maximum amount of
time and potential to grow. The combined effects of time and compound
interest are powerful, and the sooner you start the better. Try to
contribute enough to your fund to take full advantage of any
employer-provided matching contributions.
Also, learn about the insurance provided by your employer’s benefits
plan, including health, life, and disability insurance. If your
employer’s plan offers insufficient coverage, or if a plan is not
offered at all, consider obtaining coverage independently. If you change
jobs, pay attention to the benefits. Benefits will often vary greatly
from employer to employer, and changes in insurance coverage and
retirement options must be factored into your personal plan. For
example, funds in your retirement plans might need to be rolled over as
you continue to save.
Marriage. Weddings are special occasions that become
cherished memories long after the bouquet has been tossed and the rice
has been thrown. They are also events that bring about financial
changes. After getting married, you may consider opening a shared bank
account, owning property jointly, as well as sharing auto insurance and
possibly medical insurance. You may also want to begin saving toward the
purchase of your first home and start preparing to raise a family.
Obtaining and/or updating life insurance plans to reflect a name
change, if applicable, as well as including your spouse as your
beneficiary, will help to ensure that financial goals will continue to
be met. Review retirement plans and goals to establish a savings plan
that aims to fulfill your retirement needs. Getting married will also
most likely affect your tax situation. Think about the most effective
tax strategies that will help with annual filings, as well as your
long-term goals.
New Home or Refinancing. Buying a first home is a
happy event. Now, the money you may have spent on rent will build equity
in a place that you own. Whether you are a first-time homeowner or are
looking to refinance, research the various mortgage types available to
find the one that best suits your needs. In addition, you will have to
find a homeowners insurance policy that will suit your coverage needs.
This is also a good time to review life insurance policies to assure
that mortgage obligations will remain covered in the event of your
death.
Children. With the added joy and responsibility of a
child comes the need for extra financial security. Update your medical
plans to include the child. In addition, review your life insurance
policy to ensure you have adequate coverage amounts, and include the
child on the beneficiary list.
For an infant, college is 18 years away, yet the sooner the family
starts saving, the better. A college fund that has many years to earn
interest and contributions is ideal. Children may also change your
estate plan. Writing or reviewing your will becomes especially important
to make sure the child will be provided for and suitable guardians will
be named.
Starting Your Own Business. If you leave your old job to start
your own business, you will have to assume responsibility for
previously employer-sponsored benefits. It is important to maintain
retirement, medical, and life insurance plans, as you continue building
financial security.
Retirement. Now is the time to enjoy the fruits of
your labor. You may be considering relocating to a warmer climate and
are anticipating all of the adventures you will have there. However,
your funds will still require attention as you continue to manage your
money. Remember to maintain adequate health care coverage, and know your
long-term care options. Proper planning can help protect your
hard-earned assets from being spent on potential medical expenses.
Perhaps one of the most secure feelings in life is knowing that you are financially secure and are prepared for whatever may happen. Through annual checkups you can assess financial goals, provide for your loved ones, and build for the future. As you approach each new life stage, you will find that additional consideration and planning are well worth the effort.
Source: http://www.massmutual.com/planningtools/educationalarticles/articledisplay?mmcom_articleid=f931b890c195a110VgnVCM100000ee6d06aaRCRD
