- Life & Money
- Everyday Money
- Building Savings
- Julia Chang
- Mar 06, 2018
You Spend the Most Money When You Reach This Age
No matter what age you are, it probably feels like you're spending too much money and juggling a lot of financial responsibilities. But one credit-monitoring firm crunched the numbers and thinks it's pinpointed the age at which life carries the largest price tag.
U.K.-based company ClearScore surveyed more than 3,000 people on their spending and found that 31-year-olds were feeling the biggest financial squeeze, according to Business Insider's report on the study. Why? Because there are multiple life milestones hitting at once: 27 percent said getting married was their biggest expense, followed by buying a house (25 percent), having a baby (20 percent) and paying for a honeymoon (14 percent). And in order to afford all these things, ClearScore estimates you'd have to save about $60,000.
The bottom line: 31 appears to be the age at which adult responsibilities really take off, which means life can get expensive. And reaching those life goals without going into debt requires smart saving. No matter your age, if there are big goals on your horizon, here are some tips to get your savings plan started.
3 WAYS TO JUMPSTART YOUR SAVINGS
"If you haven't created a monthly budget, do so now so you can see how much of your paycheck you can reasonably set aside."
Take a deep dive into your budget. First things first: How much can you actually afford to save? If you haven't created a monthly budget, do so now so you can see how much of your paycheck you can reasonably set aside. Just make sure that you've got a rainy day fund set up too, since it's all too easy for a money emergency to wreak havoc on your finances.
Set up automated transfers. Once you've figured out how much you can spare toward that wedding or house down payment fund without depriving yourself in other budget areas, set up an automatic transfer into a separate savings account. That way, you're paying yourself first and you don't have to remember to transfer money every month (and won’t be tempted to use up your savings contributions on a new tech gadget you don't love as much).
Get inspired with a vision board. Pin up photos of your future dream home, destination wedding location, or Instagram-worthy nursery in a place that inspires you so you have a reminder of those exciting things you're saving for.
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