5 Times in Your Life You Should Reevaluate Your Budget
Written by
Chris Adam
Edited by
T. Woods
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There has been talk in recent years across the United States on the need for teens to learn more about personal finance. Some have suggested personal finance classes in high schools would help better prepare young people for the money challenges they’ll face as adults.
One topic that often comes up when it comes to a lack of personal finance knowledge among all ages is budgeting. One reason for this may be that creating a budget doesn’t exactly sound exciting or engaging — and many people would rather not think about or track where their money goes.
However, creating and sticking to a budget can be among the best moves you’ll make for your finances. Here’s a look at five times in your life when you should reevaluate your budget.
1. Buying a House or Moving
It’s likely to be one of the biggest investments of your life — and buying a house is a great time to take another look at your budget.
You’ll want to consider much more than just your mortgage or rent. Make sure to think about ongoing homeowner costs with your revised budget.
2. Getting Married
If you’re engaged, recently married or even recently divorced, it’s a good time to reevaluate your budget. Just as with buying a house, any significant life change brings a fresh opportunity to look at your finances.
Consider things like joint and separate spending accounts and how your marital status will impact your taxes.
3. Starting or Expanding a Family
First comes love, then comes marriage…and then comes another prime opportunity to look at your budget. After all, raising a family comes with lots of unexpected expenses.
According to Chubb Insurance, “As well as thinking about legal guardians and updating your will to include your child, you can start to look at your budget and expenses and where you can adjust for changes in your combined income.”
4. Having a Health Scare
This can be one of the most terrifying experiences in life. When someone in your family has a health scare, it can be an uncertain and difficult time.
While it’s not usually the most pressing thing on our minds, looking at our budget can be very helpful when you experience a tragedy. Not only can it be a good time to look at how you’ll pay for the health scare costs, but also an opportunity to plan for future events and make sure the budget supports unexpected expenses.
According to Kiplinger, “While you may have insurance to help with these scenarios, it might not be enough to replace income or cover the full expenses associated with your tragedies.”
5. Retiring
Congratulations on reaching retirement — now is another excellent time to take a look at your budget.
Retirement can bring many financial changes. Depending on how well you’ve planned, the beginning of retirement could be a smooth change or a rough one for your finances.
According to Chubb Insurance, “Budgeting for the cost of aged care, increased medical bills and possibly higher living expenses like heating for your later years will help you manage your spending now and into the future.”
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