In life, there are many financial commitments that we can make. Some of them are only temporary, and some will be small. But, some of them will be long-term, hefty, and even life changing. It’s this kind of commitments that we need to carefully consider and prepare for the most.
Whether you’re thinking about buying a house, or even a car, the commitment you’re about to make is significant. Sometimes, you can be torn between a few decisions on where your money should go. It’s not always easy to know which big commitment should see your money first. But, it’s not that impossible to figure out.
Table of Contents
Mortgage
When you go to buy a house, the chances are, you’ll be looking into getting a mortgage. It’s a great feeling to be able to own property, but it can be a huge burden too. Your mortgage rates could be high and the commitment you’re making tends to last 25-30 years, if not more. If you feel like you’re throwing money away renting and you want to invest in something of you own, a mortgage will be something your should prioritise.
Car
Depending on your lifestyle, a car can be a big or small financial commitment. You might buy something simple and cheap to suit your needs, but you could also be considering spending a little more money and getting a higher quality car. If that’s the case, think about your auto needs. Do you want something reliable or flash? What payments can you afford to spend per month if you’re not buying it outright? Be smart with your options here and the financial commitment won’t feel like a burden at all.
Home Improvements
If you’ve recently bought a house and it needs a lot of work doing, or you’re thinking of improving the place you’ve lived in for a while, home improvements can be a big investment. When you’re looking at doing work, you can sometimes get ahead of yourself. But, it can help to make sure that you’d get a good resale price, or increase the value overall when you’re making improvements. Consult a professional, like Homesmart Agents, before you look into selling to see if the value you were looking for is possible. Then you’ll know if the improvements are worth the investment.
Wedding
Perhaps you’ve recently got engaged, and you’re starting to plan your wedding. If that’s the case, then you’ll know just how expensive weddings can be. Of course, you can have a wedding with a price tag of your choosing – your investment can be minimal or massive. If you’ve bought a house you love, own a car and have money available, then spend whatever feels right on your wedding. But, if you’re struggling a little or haven’t yet bought a house, it might be smarter to wait a few years or spend a little on your wedding, and focus on buying that house instead.
Education
And then there are those commitments that don’t overall involve us at all – the ones we make to our children. It can be a good idea to start saving for your child’s education early, or whenever you can. If you get into the habit of ‘saving for a rainy day’, before long, your kid’s college fund will be huge, and you’ll feel safe with the knowledge that your children are taken care of.
