The 6 Life Events that Pack a Punch on your Finances

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There are those life events that can rattle you to the core, both emotionally and financially. These can be intentional or unexpected, but many people underestimate the financial cost of the key events in our lives. Let’s have a look at the top 6 life changes that can cost you a fortune.

Birth – $210,000
A joyous occasion for sure, a birth is a major life event in anyone’s life. With that, it takes a major financial toll. There are a huge number of things we need to purchase before having a child, including car seats, a crib for the baby to sleep, a changing table, some baby clothes, a baby monitor, and of course diapers and wipes (and plenty of them!). On average, parents will spend upwards of $500 on these items, and that is even before the baby is born! The cost of birthing the child is also extremely expensive depending on your health insurance coverage. On average, Australian hospital deliveries cost about $4,000 for the duration of the mother’s stay. Once the baby is home, it has been shown that the average family spends around $210,000 to raise a child from birth to the age of 17.

Death – $6,600
Death is an event that can come suddenly and leave us reeling from the impact, and the last thing on our mind at the time are our finances. It is hard enough to have to deal with the loss, but to pay for a proper burial of a loved one, it can cost a pretty penny, and its money that needs to come from somewhere, immediately. The average cost of a funeral in Australia (including embalming and a metal casket) is $6,600. This can be a terrible expense to bear if the person who died did not have life insurance.

Marriage – $30,000
When we think of our dream wedding, we typically think of saying our vows in a beautiful ornate church, surrounded by our cherished friends and loved ones. We never normally think of the bill at the end! The cost of a marriage is virtually always higher than you expect. According to the latest data, the average cost of a wedding in Australia was more than that of a brand new car- $30,000! This includes the church service (depending on religion), as well as the banquet after the wedding. It doesn’t even include your honeymoon in the Koh Samui – that comes extra!

Divorce – $17,000
Divorce is a life event that no-one plans for, and is a time bursting with emotion – disappointment, anger and doubt. According to the latest data, the average cost of a correctly conducted divorce in Australia is $17,000. This includes lawyer fees and court fees. Essentially, the quicker the process the cheaper it is, but those who have been through it before will tell you that few divorce proceedings are ever straightforward.

Retirement – 60% of Income
Great, it’s time to retire and live on an island somewhere – but what will you live on? Retirement is another costly venture that most starting saving for when they begin working full time. Pundits says that you will need to be receiving 60-85% of your income to sustain your lifestyle when you retire. The more you save now, the better off you’ll be, but that’s harder to say that when you need to get the washing machine fixed now. The Wealth Tutor offers a number of tools to help you begin saving for the future, and can help you work out the best retirement plan for your circumstances.

Going to School – $100,000
To make money, you have to spend money. An education is an investment in your future, but it’s an investment that requires a lot up front. As of 2013, the average student in university comes out of school with over $100,000 in student loans, an awful burden to start one’s adult life with. The Wealth Tutor can help you reduce that debt and ensure you consider your university degree time and money well spent.

What’s the take-away point? You’re going to need to have a significant savings pot to ensure that you can afford these expensive life events when they occur in the future! If you’re struggling with your savings, or drowning in your debt, contact The Wealth Tutor today, and you’ll be back on track in a jiffy.