Preparing for Life’s Biggest Financial Hurdles

Life is full of financial hurdles to overcome. Every family should have a nest egg to cover emergency expenses, but that does little to prepare you for large financial obligations, such as weddings and funerals. Instead of being stressed when those times arrive, use these tips to ensure you have the money to finance anything from a wedding to a funeral.

Pay for Funerals in Advance

The Federal Trade Commission states that a casket can cost approximately $2000, but some caskets cost four times that much. Family members must pay this one of many expenses when a loved one passes away. Avoid burdening loved ones with this expense by planning and paying for a funeral in advance. Many funeral homes will work with you to ensure that every detail of your funeral is perfectly planned. They also allow payment options to make pre-planned funerals accessible to everyone. All your family will have to do is show up. Encourage other family members to take the same route.

Create a Wedding Savings Account

Weddings are another big financial hurdle many must overcome. The average budget for a wedding and reception is $28,385. Planning a budget wedding is an option, but this often leaves brides disappointed that they couldn’t have their dream wedding. Instead, start saving early to ensure you can finance the wedding of your dreams. Create a budget, and put a portion of every paycheck into a wedding savings account. When the time comes, the two of you can enjoy planning the wedding.

Carry Medical Insurance

Medical expenses are another thing you’re bound to come across. According to the HCUP, a hospital stay in the United States can cost almost $11,000. Fortunately, most insurance companies cover a large part of Americans’ financial obligations while staying at a hospital. Always carrying insurance and ensuring that your policy is up to date is critical to ensure that you don’t have to pay out of pocket for all of your medical expenses.

Create a Budget

Saving money sounds like a great idea, but it can be difficult for many people. This is particularly true if you’re already living paycheck to paycheck. Take the time to dig deep into the finance portion of your daily life. Create a list of everything you spend money on and another list of how much money comes into the house. Then, determine which unnecessary things you can cut out. For example, a morning coffee may cost $4. That might not seem like a lot, but it can save $1,460 annually. This sum of money can then contribute to your wedding savings account. Repeat this process with everything you can until you have enough savings to cover life’s large expenses.

Live Frugally

Sometimes, cutting out a morning coffee doesn’t seem like enough. If you save that much money, and that’s all you save, it would take years to save the money needed for a wedding. That’s why many people take a more proactive approach and live as frugally as possible. Shop thrift stores instead of buying brand-new clothing. Clip coupons before going to the grocery store. Ask yourself if you truly need something before buying it to avoid wasting money. Americans are some of the biggest consumers on the planet, and there are plenty of things we could all live without.

Make Extra Money

If you want to be able to finance your dream wedding or even finance your funeral, it might require making some extra money. Pick up a side hustle, such as babysitting or ridesharing. If you have a particular skill, such as painting, consider using it to make extra money. The extra money you make can be set aside to ensure you’re financially prepared for enormous hurdles.

Life’s most significant financial hurdles can seem overwhelming if you’re unprepared for them. To properly prepare, make sure you spend significantly less money than you make. Then, set aside your extra cash to ensure you’re always prepared.

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