Whether you’re saving up for a car, home, or college, learn how your credit can help remove friction from making milestone purchases.

Before these major life purchases, it is a good idea to look at your credit reports to make sure that the information in them is accurate and complete so that lenders can make well-informed decisions when evaluating your creditworthiness. If you are looking forward to other major milestones like purchasing your first car or purchasing a vacation home, you will want to learn more about your loan options to help you make the best choices. No matter where you are in life or where you are heading, there are always financial options to discover the best loans for you and your family.


Stage 1: Entering the Workforce

The first step toward better financial literacy when you are in your early career years is making a budget and tracking your expenses. If you are still paying your students loans, prioritize paying off your debt. Remember that you need to build a good credit history while in this stage of life. When you have a favorable financial standing according to bank standards, it becomes easier to purchase an asset such as a car or a dream home on credit once you plan on settling down.

  • Build your savings and establish a good credit history.
  • Avoid increasing your consumer and high-interest rate debts any further and pay the outstanding ones as soon as possible.
  • Live within your means.
  • Start thinking about your retirement and set up your financial accounts.
  • Get disability insurance.


Stage 2: Family and Career Building Years

Settling down is more than just getting married and having your dream house, it comes with greater responsibilities and of course greater expectations. It is not a matter of your personal dreams anymore because your aspirations have to match your spouse’s, especially when it comes to building a family. Of course, what first comes to mind is buying a house, which is important for a growing family. However, this also means securing your budget for maintenance, amortization, utilities, and other expenses. Therefore, protecting your income becomes even more important, this is to keep your family protected in the event of some of life’s risks.

  • Buy life insurance.
  • Purchase health insurance.
  • Update your disability insurance.
  • Review your estate plan and prepare your will.
  • Save for your child’s college education.
  • Start your own business or build your career further.
  • Grow your savings.


Stage 3: The Pre-retirement Years

It is ideal for you to have already accomplished certain things in your life by the time you are in your pre-retirement years. You don’t want to extend your time as an employee after retirement just to be able to afford the necessities.

  • You should already be on your way to getting done with paying off your mortgage and other debts.
  • You must be confident that you have enough money to send or assist your kids to college without having to apply for additional loans.
  • This is also a good time for you to start a business if you haven’t done so prior. Even when you have already set aside some cash to last you for 20 years, take into account inflation, and the idea of still doing something productive after retirement. This way you are able to continue growing your savings through your business or potential services that you can provide.
  • This is also the stage when planning for retirement becomes more serious. Look into your portfolio and see whether or not you are on the right track. If there are discrepancies between your plan and situation, you can immediately look for solutions.


Stage 4: The Retirement Years

  • Have a clear idea about your potential expenses during retirement. How much will you be spending monthly now that you are at a whole different point in your life?
  • It is crucial to update your will and evaluate your estate plan! You want to leave a great legacy to your family, right? After having spent 20 to 40 years growing your wealth, you will need to look for wise ways to leave your family with a big estate.
  • Strategically turn your retirement and pension savings to income. With that also comes ensuring that you avoid the tax paid at retirement. With the help of a financial planner, you will learn that there are strategies to reduce the tax friction that comes with most retirement benefits. Be aware of which accounts you have to withdraw from first to ensure that you will not be wrestling with authorities due to tax liabilities. The objective here is to ensure that your savings will last longer.