Most people are working towards milestones in life. These tend to be unique for each person, but many of us look towards the same few achievements. Reaching these big life events is often a case of patience, hard work and dedication.
Almost every significant milestone in life has some involvement with money. It often helps us to reach the goals that we want to achieve and to afford what happens when we get there. What are some of the big life events that people often have to save for throughout their life?
Moving out
One of the first events that pushes people towards financial independence is moving away from home. This may be going to university or renting your first property after stepping out from under the umbrella of mum and dad.
It’s a big moment in someone’s life and often one that comes with associated costs. Deposits, tenancy fees, furniture and other charges can be expensive and it’s always easier to save up for these rather than getting yourself into debt early on.
Learning to drive
Another milestone that many reach sooner rather than later is learning to drive. Some are fortunate enough to enjoy lessons paid for by their parents, but others have to self-fund these. The average learner needs 45 lessons before they pass the test, at a cost of £35 each. That is a total cost of £1575.
Once you pass, you may also have to think about buying your first car and then all the associated costs that come with running a car. Those include fuel, insurance, road tax, breakdown cover, and the annual MOT. If you live in a city with good transport provision then you might not need to make that investment. You could join a car share scheme and just hire a car for the times you need it.
Avoid finance and loan agreements if possible when you’re younger because they can be unaffordable and leave you with less money for other areas of your life. Buying your first car is a memorable and cherished moment for most people, so start saving towards it if you haven’t already.
Buying a home
Few moments are more significant than getting the keys to your first home. The average age of first-time buyers is now over 30 in the UK, signaling how difficult a milestone this has become to reach. House prices have shot up over the last couple of decades and the cost of renting has made saving for a deposit more challenging.
Being approved for a mortgage depends on a few key factors. You need to have a sufficient deposit to put down (usually at least 10% of the property value) and have a stable credit history to warrant lenders approving your application. You can improve your credit score to increase your chances of being approved and possibly secure a better interest rate.
Getting married
Perhaps the most inspiring milestone that many people look towards is getting married. This is a truly special occasion, where you and your partner commit your lives to each other in front of family and friends.
What might come as a shock to some is the cost of a wedding. In 2023, you’re looking at just shy of £20,000 for the average event. Some might say the wedding industry has gotten out of hand and there are still lots of ways to show your love and commitment without breaking the bank. Nevertheless, a special wedding day is always going to be a bit pricey and you better get saving for that if you want to make your vows and share your life with the person you love.
Achieving the big milestones in life is likely to cost you a fair bit, but they should certainly be worth the sacrifice and effort. Start to think about how you can save more effectively for those big life events so you aren’t trying to catch up down the line.