One issue I have run into recently is how to best utilizing my coveted dollars into good use. I have certain accounts in place for my necessities and my play, but I have been asking the questions for great unknowns in my life.
Am I setting myself up for my future goals?
Here are some of my goals:
- buy a house
- have children
- delve into hobbies
- retire comfortably
The question I have been asking myself is whether or not my current savings and dollar utilizations are adequate for these goals. My current financial situation is quite comfortable. I am able to afford my residency and have the ability to spend my money on pleasurable items, like going out to eat. I am saving a decent amount of money for a future down payment, so I feel comfortable in buying a house dow the line. Hobbies come and go and I feel I am able to accomplish those goals. In retirement, I am setting money aside through my company and a personal IRA.
Children, however, feel like a great unknown in my life. People have stressed the financial 'burden' of having a child. I see having children as an exciting time, but to what extent does it take to feel financially comfortable paying for college, diapers, and toys.
Overall though, I feel it is important to gain perspective on each endevour you wish to pursue. Whether it is contacting an expect or talking to your parents, people with experience can provide a lot of knowledge for you to better understand how to achieve your goals. In fact, they may be able to provide ideas on how they started a similar goal. This could help propel you to follow a similar path. I am a true believer talking with people about goals can help to shorten your time to achieve a goal by avoiding the most common pitfalls that come with each new experience.
In a dollars and cents view, you have to take a good look at your expenses and evaluate how each purchase you make is necessary or desirable for your future. Now, you may have enough money where it may not be difficult to take on a new experience. Many people buy a house and pay a very similar payment each month when they rented.
Another factor I had not considered early in my theoretical spending solutions was the fact I would be earning more income in the future. While prices will also go up, it is most likely I will have a higher income and can better accommodate new expenses.
For now, I am left with more complications on what to do with my life.