student life

What are some of the biggest financial events it pays to plan for?

first car
Written by Nigel Simpkins

When it comes to our finances, there’s nothing worse than a nasty, unforeseen shock, and nowhere else is this truer than life events. However, knowing what they will be and when to plan for them is a great skill to have to put you in an advantageous position. In this guide, learn about some of the top financial events and how to copper-plate your finances for them.

Your wedding 

Most of us imagine we will get married at least once in our lives, but it can be a significant financial event to plan for. According to Hitched’s 2022 National Wedding Survey, the average cost for a wedding in the UK in 2021 was £17,300 – buoyed by the 73% of couples who got financial help from a relative or friend to pay for the celebrations.

With such a huge amount to save, you may choose to put savings aside regularly in advance when you are with a partner who is on the same page as you – or even put away money while you’re still single to cushion the blow even further! Loans can also be a way to quickly access a lot of cash, though always make sure you can afford the repayments.   

Your first car

Buying your first car is costly for most people and can be a surprise burden – particularly after spending so much on driving lessons.

Thankfully, there are lots of ways you can get the funds together, including saving your money, renting a car via personal contract purchase or similar, or even taking out a loan for additional financial support. With any form of credit, however, always make sure you can afford the payments and have stress-tested your finances, so you’re not caught out if you lose your job or other expenses increase due to inflation.

Buying your first home

Getting off the rental market is high up the list of many in the UK, but it can be difficult since purchasing a house can require a significant amount of deposit money to get a mortgage. Most lenders require at least a 10% deposit to get a mortgage, and with the average property value in the UK totting up to £304,867 in June 2022, that means more than £30,000.

When gearing up to buy a property, it pays to maximise your savings and take advantage of government schemes like Lifetime ISAs. Then when it comes to looking for a home, seek financial advice from an independent mortgage advisor so you can be sure you’re able to take advantage of all the best mortgage deals on the market and have the advice needed to succeed in the fast-paced and admin-heavy house-buying process.