5 Most Important Financial Decisions You Will Make In Your Life

1. Deciding On A Career Path And How To Move Forward

The first question to ask yourself is what do you want to do with the balance of your life. When you have made this decision it will basically provide you with a path that you need to take and what type of salary you can expect in the future. For individuals that want to earn a lot of money (like almost everyone), then you should select a career that has a high salary range. However, if you are one that prefers to work to live rather that living to work, for that reduced stress, you might have to settle for a job that the pay is not as high.

After you have an answer for the question above, the next step is to determine the qualifications required to achieve this. Investigate what pursuing this course of study will cost. You should ensure that the return on your educational financial investment will be well worth it in the long run.

2. Deciding On What Type Of Car You Want To Drive

Most people desire to drive a fancy car, top of the line, all the features etc. This is usually one of the first things on your mind once you have found that job of your dreams.

Unless you are making a 5 or 6 figure salary per month, then you probably will need to secure the deposit for financing this car. Repayments for vehicle loans should be paid consistently and regularly so that there is no issue with your credit score. Interest rates are what repayment schemes are based on, you should be able to afford an increase in your repayment along with the insurance premiums for the entire life of your loan. Eating your car tires when you run out of money for groceries is not an options so be very smart and wait until you are comfortable financially and stable, before you splurge on the vehicle of your dreams.

3. Will You Use Credit Cards?

A good way to establish a great credit score is to own a credit card and continue to regularly pay the monthly payments. Your financial history is placed under the microscope whenever applications for finance are made. Most creditors check how well you manage your credit card payments as one of the initial checks. Having credit cards is a great idea but it’s how well you manage them and how responsible you are in using them that is the most important.

Some people believe that a credit card is a license to spend money but it isn’t. Simply using a credit card and then justifying it by explaining that you will handle the payment is very unwise. Even after all that, it is not advisable to use one credit card to pay off the balance of another or any other debt for that matter. You will just be digging your debt hole bigger and bigger, making it continuously difficult to get out of.

4. What Are Your Plans For Property?

Again unless you are making some serious cash, then purchasing a home will undoubtedly require a mortgage. The repayments of which are undertaken over a period of 20 to 30 years. You can lose your home is you default on your payments, this means all the money you have put into it will be lost.

A better option would be to rent for a few months or a year, something short-term before you jump into a major financial decision like this. make sure that you have settled in your job and expect to stay for a while before committing to a mortgage.

5. What About Taking Out Life Insurance?

You don’t want that if you die all you financial burdens become those of your closest relatives, so that’s how life insurance comes into view, it ensures that you don’t. As you get older and probably have a family, then you may need life insurance to endure that they are financially provided for in the event of your death. No one likes to think about it, but death is inevitable and you should ensure that you are financially prepared for it.

It is advisable to ensure that you get a policy from a reputable company as they are policies out there from cheaper agencies that have loopholes in them that allows them to refuse payment. Peace of mind is better in a situation like this.