When Starting a Business
Starting a new business venture is never easy, especially if you’re doing it on a limited supply of money. Equipment. Inventory, supplies, office space… all of these cost an arm and a leg. You won’t get very far if you save most of your money and use a dropper to supply your new business with funds.
You should, in theory, pause your retirement savings until your business starts generating profits. We say ‘in theory’ because you have to consider the potential drawbacks too.
Whatever you do, don’t take money out of your retirement fund! It’s alright to stop saving and to use the money you would have put away, but any more than that could be disastrous to your nest egg.
When Saving for a Home
When purchasing a new home you should try to put down as large a down payment as possible. Sometimes, no matter how much you budget and set aside at the end of the month, it may not be enough, especially if you’re already saving for retirement.
Make sure that the house you buy now will be fit for you during your senior years, otherwise, you might need to downsize eventually.
Your home will potentially be your largest investment ever, so it’s alright if you need a bit more cash to help you out. Just make sure you go back to saving regularly!
