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Tips for Saving for a Major Life Event

Tips for Saving for a Major Life Event

Our lives are filled with major events, such as marriage, buying a home, growing your family and reaching retirement. It may seem difficult to build savings for these larger expenses, but it is possible and can be so simple. Here are some tips on saving for a major life event:

Plan Ahead for Major Expenses

Many of life’s most significant events allow you to plan for them ahead of time. This allows you to also plan ahead for the expenses that come with the event. For example, couples typically get engaged before they get married. And, many people spend months looking for a home and building up their savings before putting an offer on a house. When possible, the first and foremost step is to determine what you’ll need to start saving. Costs vary for each major life event, and it’s important to know what you’re in for and what to expect. Consider some of the following points:

  • Estimate your expenses and set a savings goal – Research the average amount of savings people typically need for each event. For example, in 2017 the average U.S. wedding cost $33,391, and the average cost of having a baby was $10,808.
  • Determine how much time you have to save – If you’re saving for a dream home, you may have 10 years, or it could be 10 months if you’re about to start your family. Determining how much time you have to save will help you know how much to put away each pay period.
  • Create a monthly schedule – Having an overall plan for adding to your savings fund, and calculating an amount to add at each pay period will ensure you’re on track with your savings.
  • Establish a separate savings account for each event – Many people find it helpful to set up a separate account and automatic deposits to that account each time they get paid. This helps prevent you from spending the money you’ve already set aside.
  • Include savings amounts in your budget – One of the best ways to stick to your savings goal is to treat your savings like all your other regular financial obligations—as a priority and a commitment to your future endeavors.

Sometimes you can’t plan for a major life event. You never know when your car might break down, experience health concerns or any number of emergencies. For these situations, it’s a good idea to have an established emergency fund. Check out our tips for building your emergency fund.

Cut Out Small Expenses and Create a Budget

Saving doesn’t have to be a challenge. Eliminating minor and often unnecessary expenses can save you a lot of money in a short amount of time—and creating a budget can help you stay on track while saving. Check out our other budgeting and saving resources:

Plan Your Savings with Our Calculators

Want to start saving for your next big milestone? Use our Save Towards a Goal calculator to start planning.

Next steps:

  1. One way to start saving is by opening a savings account. For more information or to open a savings account, visit our website.
  2. Keep up with more of our Personal Finances tips by subscribing to receive articles in your inbox each week.
  3. Contact me to learn more.
Renee Nichols

Renee Nichols

Operations Specialist (515) 271-1006 Email Renee

A native of Memphis, Tennessee, Renee Nichols is a Operations Specialist at Bankers Trust. She joined Bankers Trust in 1997 as a teller at the East Branch, and she worked in a variety of customer service and relationship banking positions before moving to her current position. In this role, Renee is the Universal Lead and is responsible for opening, servicing and maintaining consumer and commercial accounts. Prior to joining Bankers Trust, Renee spent four years at Union Planters Bank in Memphis before moving to Des Moines. She studied at the University of Memphis and Upper Iowa University, where she earned her Bachelor of Science degree. Renee believes that not only building relationships, but also listening and communicating effectively with her customers is essential. Renee is actively involved in the community and enjoys volunteering with the Bankers Trust financial literacy program Read to Save, Latino Heritage Festival, Celebrasion, Variety Telethon, as well as with her children’s various school activities. Renee has been recognized for her service with an Outstanding Sales Achievement award in 2011 and Certificates of Achievement for outstanding volunteer service from Bankers Trust, the Oak Ridge Neighborhood and Read to Save.

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