Have you ever played the Game of Life? When you buy something big, like a car or a house, the game grinds to a halt to make sure you treat that life milestone with its due attention and care. Just like the real game of life, financial milestones are often signs you have hit big life goals. How does one prepare for these goals and how can you meet them using financial products like loans for life’s milestones and finance? We show you how in this guide.
Life Goals – Your Milestones
Our life goals may be small when we’re young. It might be going to college, buying our first car, or being approved for an apartment or condo rental. When we’re older, we may want to purchase our first home invest in 401(k) for retirement, or even buy a second home as an investment or holiday home. These milestones usually build upon one another; finishing college means finding a high-paying job, which can help fund a home. Think to yourself what milestones you’d like to achieve and orient your goals appropriately.
Loan Options For Those Milestones
Each milestone will have loan options associated with them. When we’re young and in college or trade school and our car tire goes flat, there are loans for emergencies such as payday loans which can get you out of a jam. For buying cars or college, you can opt for personal loans, which are substantially larger but are spread out over a longer term with lower interest rates. A mortgage usually lasts over 10 to 30 years, which means they’re strategic and can be used to build your wealth through equity releases. You can use these financial loans to plan.
Planning Ahead With Loans
To achieve your financial milestones, you can use loans to plan your trajectory towards your goals. For example, you can pay for college now using a loan and pay it off faster once you’ve landed a job with a high salary. You can also parlay that salary into saving for a home and mortgage, which will build equity in your home.
You can use equity to buy stocks, renovate your home to flip for a profit, or buy additional properties as investments. Even payday loans can be tactical, as you may not want to wipe out your savings in an emergency, which can easily derail your financial plans and goals. Just remember to read about your obligations and rights before signing on the dotted line.
Success Stories
Joey* finished high school with the aim of being an architect. Coming from modest means, he worked for a year before taking out a loan for college. He was able to afford an older car that allowed him to get to work campus and home again. After his four-year degree, he interned at an architectural firm.
Impressed with his work ethic, they offered him a full-time job. He saved diligently, despite some appliances going bust and requiring payday loans. Eventually, he met his wife and they had enough to purchase a family home with a 20-year mortgage. Over time, they built enough equity in the home to purchase a further two homes, which supplies them and their children with ample passive income every month – including a college fund for his two kids.
With a bit of planning, you can find financial independence with strategic finance and loans!
*Real name withheld for privacy
