It might feel as though we have umpteen financial burdens in our younger days – but in reality, it’s only the tip of the iceberg. Trying to collect enough money to go on your weekly night out is nothing compared to the difficulties that you can face when it comes to saving for a house deposit and the like.
Unfortunately, these expenses keep on getting bigger – and potentially more surprising. It’s the surprising element that today’s guide is going to hone in on, as we take a look at some expenses which might raise your eyebrows when you start to age.
The Physical Cost of Growing Old
Apologies in advance for the morbid topic, but it happens to everyone. There are two strings to this first point, with the first being elderly care. It is something that’s grossly expensive and will eat into your savings almightily quickly. Unfortunately, many of us completely forget about it.
Then, there is the cost of a funeral. Again, it’s something that stretches into the thousands, but something else that nobody budgets for.
The Cost Of Having Free Time
Next on the list is the true cost of having free time. One of the biggest misconceptions is that we don’t spend as much money when we retire, but in reality, the opposite tends to happen.
Instead of being stuck in an office or your usual place of work all day, you can do whatever you want. Usually, you’ll find a pastime where you’ll spend money – and this is dangerous territory. It might be a new hobby, or it might be a regular trip to the local cafe, but it will hit you and your finances regardless.
The Cost Of The Kids
As we all know, kids aren’t cheap. Something that might surprise you is that the costs don’t stop when they fly the nest, though. On the contrary, the expenses tend to get bigger.
Of course, you are under absolutely no obligation to bankroll them. However, it is becoming more commonplace to help them get on the housing ladder, or even help them with their university fees. Again, these two expenses aren’t cheap – and will probably stretch into the tens of thousands.
The Cost Of Insurance
Finally, it’s something that we all detest, but like it or not, insurance is a must. Sure, the likes of life insurance might be an optional extra, but most of us take it anyway.
It’s things like car insurance which are increasingly expensive, but still a legal requirement. This is compulsory if you want to stay on the roads and once you surpass a certain age, your premiums are likely to rise. This is another example of one of those so-called little expenses that at some point, aren’t so little anymore.
There are alternatives to the above, such as the bus, but this prompts different expenses and depending on what area of the world you live in, potentially a loss of freedom as well. Retiring is a time where financial planning should be seen as paramount, so don’t ignore the important costs.