AJ & KJ: Tis the season where we start to talk about the changes a new year will bring and reflect on everything from the past year. Before moving forward though it’s important to take stock of all the life changes that have occurred that will impact the next phase of our lives.
1. Changes in incomes.
Whether it went up or down, you consolidated into being a single-income household or you won the lottery changes in income top the list for considerations that require an overall financial reevaluation. Perhaps you’re considering a significant career change or a return to education. All of these things are major factors in your financial future. Compare year over year income and spending levels to identify commonalities from which you can begin forecasting the next year’s budget (and savings!).
2. Health changes.
Until you have reason to give pause with regards to your health it’s an out of sight, out of mind variable. This year we both underwent new-to-us medical diagnoses that have impacted our lifestyle and our budget significantly. We’ve added a monthly boot camp and hefty expenses of supplements and vitamins which will change the way we allocate our available funds in 2015.
3. Family status changes.
We’re at that point in our lives where most of our friends are now married or in a committed relationship and have babies on the brain. We’re the very proud aunt and uncle to three munchkins and holiday shopping always reminds me how expensive those little boogers can be. Whether you’re expanding your family, taking care of elderly family members or just planning for the future these can be expensive variables.
4. Change in housing status.
Bought a home? Sold a home? Bought a home and have yet to sell the other home? Thankfully we’re at the end of a year that has seen a lot of home improvements and renovations, so it’s all blue skies and rainbows from here – until a tree falls, a pipe bursts or I find some new Pinterest-inspired monstrosity of a project. It’s hard to plan for the unknown, but build your budget based on what you think you’ll see with regards to housing changes and don’t forget to maintain a healthy emergency fund for all those unknowns.
5. Marriage status.
Congratulations! For better or worse a change to your marriage status impacts more than a few significant pieces of your life and budget. 2 vs 1 is a very different conversation and requires planning! It involves a complete review of your finances from savings to beneficiaries of your accounts and life insurance (just to name a few).
We can’t wait to start our 2015 planning and have several of these considerations to address. The prospect of a new year is always exciting and we’re looking forward to a more successful, healthier, calmer 2015!
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