Todd Nesnick
Some factors that affect your financial success are beyond your control. However, the decisions you make in the three main areas of your life can greatly affect your ability to achieve financial stability.
Explore below the four most important financial decisions that can shape your life and take the necessary attention to avoid making financial mistakes that will cost you dearly.
Education
More educated people tend to earn more and accumulate more wealth. The gap between those with the highest education and those with the least education has widened significantly in recent years. That’s not to say every degree offers a higher income, and after all, some well-paying jobs don’t require a higher degree.
The first option is a master’s degree or another degree from a foreign university, hoping that in this way they will ward off evil and eventually realize their dreams. Dreams related to career reintegration, which is an “impossible” goal right from the moment they enter the University, because the first thing they hear in the lecture hall is that they will not find a job after finishing school. professors are encouraged to seek out opportunities abroad. As a result, they wonder what they’re doing in it, when they know that in a few years they’ll be another figure in the unemployment rate.
Marriage & kids
According to Jay Zagorsky, an economist and scientist at Ohio University who has studied the financial models of thousands of adults born between 1957 and 1964, those who are married (and still married) have a wealth of talent. net worth is twice that of unmarried people. which means that married couples typically have about four times as much wealth as unmarried households. The wealth of singles usually increases slowly over time, while that of couples often increases after marriage.
Marriage has financial advantages such as cost sharing (rent, loan maturity, bills). Two earnings (in case both work hard during the day) is better than one. However, getting married means you lose complete control of your finances. You no longer make decisions alone but with your partner’s consent.
If the two of you don’t have similar financial habits, the marriage business can cost you dearly. If your partner tends to spend money on things that you consider excessive (gadgets, cosmetics, expensive clothes, car accessories, etc.), you will have problems in the long run. Talk seriously about your finances and clear things up before you get married. Of course, don’t expect to change your habits overnight, but at least both of you are prepared to make mutual concessions.
Kids deserve every “financial” sacrifice, but the truth is you may not know the bill until it’s too late. Children are great, but they change our lives in general and of course our long-term financial plans. These days, with private clinics and single beds, suites, and more, having a baby can be expensive! But nothing compares to the cost of raising a child and transforming it from an infant into (preferably) a modern, educated and responsible human being.
Home
The decision that can have the biggest impact on your wealth is whether or not to buy a home. The gap between the rich and the poor between landlords and tenants is huge. The researchers found that, unlike marriage and divorce, home ownership in general doesn’t make people worse off if they can’t keep the home they own. People who return to rent – because they lost their home to foreclosure, for example – often have the same amount of properties they had before they bought the home.
This is the age-old question that perhaps more than any other question that plagues everyone, especially many couples who have just decided to start a new family and find it difficult to decide what is the most profitable solution for them. me. Admittedly, the final decision in the dilemma between buying or renting a house depends on many individual factors, such as the financial ability and willingness of each party to “commit” or not. property or loan, as he decides. want to buy but don’t have enough capital.
So for the eternal dilemma, here comes his little companions:
I want to buy a home, but will I be able to meet the loan payments? As a homeowner, should I cover the cost of home maintenance? Is living in a rental home for years a waste of money? And if the owner wants to be the owner, where do I find another house to rent?
Obviously, the answer is not easy, mainly because it requires extensive research and a rational approach to all the data and trends of the times, because the right decision can vary depending on prevailing conditions from time to time, as well as emerging trends, which will determine the future state of the real estate market.
A mortgage is probably the biggest loan you’ll ever take out. Your paystub is not enough. Committing to installments over the next 25 to 30 years can be life-changing, especially if the installment amount is close to what you can actually pay with no problem with the rest of your day-to-day expenses. What is happening today, when revenues are falling rapidly while rates remain stable, is clear evidence of the seriousness of this decision and the importance of considering all parameters and related risks.
Divorce
In the end, your choices did not lead to happiness. Lawyers don’t come cheap, so neither should your divorce (although the proceedings are starting to get easier, you can still get out of it in the end). But the other costly part of a divorce is the division of your joint assets. This is a big problem, like how to get pay stubs from direct deposit. The bitterness that often accompanies any divorce leads to unreasonable claims. You may be forced to sell an asset during a particularly bad market. If you have children, alimony and the need to have two homes to raise them are a significant expense. After all, all that you have gained during the years of marriage will inevitably be lost.
Of course, everything is relative. Even if you’re divorced, rented, and uneducated, you can still accumulate wealth if you track your spending, save regularly, and invest for the future. The odds may be against you, but you can beat them and succeed.