One of the easiest ways to be ready for change is to prepare for it ahead of time. Making plans and prepping for some of life’s changes can make things methodical and easier when the time comes. Some life-changing events to prep for include:
- College Costs
- Retirement
- Supporting Aging Parents
- End of Life Needs and Expenses
It might feel better thinking about some changes rather than others but being responsible means taking a look at changes that most people face. Prepping for those changes can help you make smart decisions that won’t break the bank or take you by surprise down the road. Let’s break things down and look at why preparing for these life changes is important.
College: Most people agree that some form of higher education gives kids a bigger chance of being independent and competitive in today’s world. Making the decision early on to support your child’s higher education makes it easier to help them when the time comes. Thanks to compound interest and specialized tax breaks, you can save and invest small amounts of money over a long period of time. This money will grow right alongside your child and both will be ready when the time comes for your child to take their next steps after high school graduation.
Retirement: Thinking about your later years may seem unimportant in your early years. It’s hard to imagine being ready to retire when you’re just starting out. Similar to prepping for college for your kids, preparing for retirement will make all the difference when the time comes. Planning for your retirement helps you make strategic decisions throughout your career, keeping the end goal in mind. From working for companies that provide a 401K to making investments that pay interest or dividends, having a plan helps you make the best decisions for your desired retirement goals.
Supporting Aging Parents: People are living longer. It is very common for adults to be parenting children and supporting aging parents at the same time. Working with your parents ahead of time to plan for how they want to be supported and what it will take to do that is very important. Similar to your own retirement, it is vital that you know what your parents’ assets and resources are so you won’t be surprised when they need you to step in and help out. These may be tough conversations, but they are very crucial for safety and expectations.
End of Life Needs and Expenses: We are all going to pass away. Taking steps to ensure your passing will not be a burden on others or is managed in the way you want is your responsibility. From estate planning, including preparing an advanced directive, will, and trust, to making funeral arrangements and pre-paying for costs, it is important not to leave these issues for your loved ones to manage.
The more life-changing events you can prepare for, the less likely they will have a negative impact. Be responsible and make a plan to protect yourself and your loved ones when the time comes for the big changes.