3 Big Expenses You Can Face In Your Lifetime

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It’s true what they say – Money is what makes the world go around. But some things in life can cost us a lot more than others. In your adult life, you will have to pay out for things that have the potential to affect you for the remainder of your life, which is a scary thought if your expenses are rising faster than your income. Here are some of the biggest expenses that you can face in your lifetime, and how much you should pay for them.

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  1. House

The largest cost for most families is their housing, and that’s just when we’re talking about renting a property. Buying a house is a whole other ballgame. You will want to ensure you consider all other expenses you have to pay, before deciding on any particular house. In general, you shouldn’t settle on any houses that cost more than three times your annual income. It’s unlikely that you’ll be able to pay the full amount for the house upfront, so you’ll have to apply for a mortgage, but it’s probably best to try to save up for the deposit, rather than getting a loan and costing yourself even more money in the future. Mortgageloans.co compares the fees and rates of mortgages in different cities and states, to help you find the best deals.

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  1. Car

A car has many costs other than its overall price or monthly payments; You also have to pay for fuel, repairs, maintenance, parking, insurance, and a whole range of other things. Because of this, you shouldn’t purchase a car that costs any more than one-third of your annual wage. Saving up to buy a car is always the most sensible option, as you avoid any interest. However, that isn’t always possible, especially if you need a new car quickly. In this case, you should ensure you shop around for the best interest rates on car loans and finance plans, to avoid you having to pay through the nose for your car.

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  1. Baby

Being a parent is one of the greatest joys in the world, but it certainly comes with a lot of responsibilities. One such responsibility is your finances. Babies are little bundles of joy, but they are expensive too, so you need to ensure you can afford the extra expense. The last thing you want to do is add to your financial worries by taking out a loan, so saving really is your best option here, especially since you will be paying for your new child for the next eighteen years of your life. Try not to overindulge, and buy too many clothes and toys for your baby that you know they’ll quickly grow out of or won’t use. Visit babycenter.com and use the baby costs calculator to work out how much your little munchkin is going to cost you the first year.

You need to money to live, so be sure you properly think about your finances and set budgets before making any major and expensive purchases or commitments.

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