Expecting The Unexpected For Life’s Milestones – this is a state of living my husband and I share together. We did things in the “traditional” order: bought a car, bought a home, had kids, planned for retirement…but along the way of our life journey…of course, we’ve encountered some hills and valleys. Are you expecting the unexpected for life’s milestones?…
Expecting The Unexpected For Life’s Milestones
We have always thought our home was our best retirement investment; making it our priority to pay down as quickly as possible. That meant staycations rather than vacations some years. Eating at home rather than eating out. Watching TV rather than going to the movies. I’m happy to report – this financial planning has paid off – we will be mortgage free next year! Next year guys!!
Now, we are faced with expecting multiple life milestones concurrently. Not too far away will be the days of university (or college) tuition for the kids. Home renovations (our dated bathroom – pictured above – was our last
money pit – er – home renovation. Next up is our original 1940s kitchen).
For many Canadians, the traditional sequence of life events – finish school, get married, buy a house and have kids – does not always happen as it typically did for previous generations.
- In fact, a recent TD survey found nearly six in 10 (58 per cent) Canadians have completed or are on track to complete their life’s milestones in a different order than they originally expected.
- More specifically, Gen X Canadians are more likely to complete or be on track to complete them in a different order (64 per cent) than Millennials (52 per cent).
While the order of life’s milestones may vary, thinking ahead about your goals and putting a financial plan in place can help manage the financial impact of these significant life moments, whenever they occur.
Preparing for life’s big moments requires planning and saving, and regardless of your age, it’s never too early to build a financial plan and set goals for your future.
If you’re at a point in your life where you’re looking to make big choices, it is important to ask yourself some key questions and then meet with a financial planner to map out a plan that is unique to your situation and aspirations.
- How do I handle multiple milestones occurring at the same time?
- Is it smarter to plan a wedding or buy a home first?
- What costs should I factor in when contemplating buying a home?
- How much do I need to save to comfortably enjoy a parental leave?
- How do I know if I’m on track to save enough for retirement?
When it comes to being financially prepared for life’s milestones, the TD survey found:
- Only four in 10 Canadians say they have properly budgeted or are properly budgeting for having their first child (39 per cent) and for retirement (41 per cent)