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01.08.2019

Life events that can affect your finances

“Life is like a box of chocolates, you never know what you’re gonna get”

It’s a quote we all know and love, simplifying the well-known fact that life is unpredictable. Sure, there are times where this can be a great thing and everything will go the way you plan it to, but sometimes even those who plan everything to the finest details aren’t prepared for the things in life can throw at you.

Whether it’s good or bad, certain life events can have a huge impact on your finances. As such, we thought we’d compile a few to show how they can affect you and some ways you can prepare for these life changes.

Getting Married

Joining together as a couple also means you have to join your finances. Once you are married, you will have to manage your money together and all choices will have to be made for the good of you both.

Making a joint effort at money management will require high levels of patience and compromise. You will need to set out new budgets, agree on future financial goals and even create a joint bank account.

This becomes more complicated the later in life you get married, as many people are often set in their financial ways and are less willing to change. It’s best to try to arrange this before the big day to avoid any future tension once the honeymoon period is over.

Getting divorced

On the other side of the coin, many people are left in financial distress as a result of a marital breakdown. Recent divorce figures show that 42% of marriages end in divorce, meaning thousands of people have to then split all their finances in half.

Understandably this is not everyone’s first thought when reciting their nuptials, but the truth remains that some things just aren’t meant to be, and some people are better off apart than together.

Divorces can be expensive, with the average coming in at over £14k for legal fees and living costs. On top of having to hire solicitors, you will potentially have to find a new home and can end up being stuck dealing with debts that were once joint on your own.

Expanding your family

Deciding to bring a child into the world is one of the biggest decisions you can make. According to the most recent Cost of a Child report, the average cost of raising a child until they reach 18 is £75,436 for couples and £102,627 for single parents.

Given that this doesn’t include university fees, it’s no wonder many parents struggle financially. Having to add in extra expenses for items such as nappies, food, clothes and childcare is enough to stretch anyone’s purse strings.

Many women also take a cut in their wages for maternity leave, which often results in budgets being pushed into unaffordable territory. It is for this reason that many people are choosing to start saving for a baby long before their due date, so that they are not caught short once baby has arrived.

Getting into an accident/seriously ill

This is something no one can really plan for. Injuries or illnesses that affect you long-term can result in lengthy absences from work and even stopping working altogether, which means less money for you to live on.

Stress is often added to this if the accident wasn’t your fault. The best thing to do in these instances is to contact an injury claim lawyer to claim compensation. Companies such as Scots Accident Claims  can work with you to claim compensation for the injuries you have received and the loss of earnings.

It’s also important to check what sick pay you are entitled to from your employer and if you are able to claim any benefits to help you get by either for the foreseeable future or until you are able to return to work.

If any of these life events have left you struggling financially, contact us today on 0808 2234 102. Our friendly experts are always on hand to offer you free and confidential advice to find the debt solution that’s right for you.

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