Life is made up of hundreds of little purchases that barely touch your wallet, plus the big ones that require a huge chunk of your finances. When it comes to major purchases, you should always plan carefully.
For some of the biggest purchases in life, you’ll have to turn to borrowing money. Some might require long-term saving to treat yourself. Here are some of the things that are likely to cost you a lot from year to year, and how to handle them.
House
For the majority of people, nothing will ever cost you more than buying a house. Because of this, you should never rush into it. When you start out, use property sites like Prime Location to check out different prices in different areas. When you find a few ideal homes, always ask for a viewing before making any rash decisions.
Unless you’re completely loaded, you’re going to need a mortgage to pay your home off over time. Compare mortgage loans from different banks and make sure you find the best one for your situation. You’ll also need funds for things like furniture and appliances, which can cost you into the thousands.
Buying a house should only be done when you’re in the right position to do so. In some cases, it’s better to look at alternatives like renting condos or apartments.
Cars
Buying a car is another huge expense. There are many resources online to check out prices in your area. You can also have a look around local dealerships for new and used cars. But you’ll need the funds to afford one.
Many people turn to a loan when purchasing a car. The good news is there are sites which offer loan rate comparison, so you can find one that fits your needs.
Quite often, you won’t need a huge loan, as dealerships offer financing options for you to pay month by month. This makes shorter term loans helpful when paying for your vehicle.
Education
Education is a major investment for your future, so sometimes spending more can pay itself off in the long run. Before you consider college or university, make sure you’re going for the right reasons. If you’re unsure of the degree you want to study, it might be better to hold off.
There are many loans, grants, and scholarships available to ease the financial burden of higher education. Some countries, particularly European ones, also offer free education. However, staying near home might save you more money on living costs. Top Universities can give you information on schools, course, and costs worldwide.
Smartphones
A lot of people might not consider their phone a significant purchase. However, since many people pay for monthly contracts on their phones, it can end up being expensive in the long run.
It’s important to have a smartphone with internet data for work, family, and personal usage. This is why contracts are useful, as well as letting you upgrade your phone every year when they become outdated. Make sure you compare phone plans to get the best deal.
A cheaper alternative is to get a SIM free phone with a pay-as-you-go SIM card. This is ideal if you only use your phone for texts and calls, but data will cost more.
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