Understanding Financial Implications of Life Plan

The Bottom Line? Everything Today is More Expensive!

It might feel like all the important life expenses are more expensive today and that would be because it is! Even when you take into account inflation, the cost of buying a house today is almost four times that of buying a house in 1940, according to CNBC.

The implications? A good budget and idea of life’s future expenses will help give you the confidence to live your life fully and without anxiety.

Task:

1. Make a general guess of the cost of the following items you put on your life plan, and write them down on your timeline:
   • Cost of a home (where you want to purchase it), and the downpayment needed
   • Cost of a car you would like to buy
   • Amount of retirement savings you will need for your determined retirement age
   • The amount of money needed for your Emergency Fund
   • The cost of a wedding (that you would see yourself having)
   • The cost of having a child, and the total cost for the number of children you want
2. Now go back and research the real costs of all those items, and modify your numbers on your timeline as needed.

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