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you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
So, before you commit to a major expense, take a deep breath and read this.
GOBankingRates spoke with financial experts to find out strategies to help determine if youre truly ready for thatsignificant purchase.
This method allows you to experience the financial impact firsthand.
This includes one-time costs like closing fees on a house and ongoing expenses like insurance and maintenance.
Evaluate Your Emergency Fund
Erika Kullberg, founder ofErika.com, emphasized the importance ofemergency savings.
Ideally, you will have three to six months worth of living expenses saved up.
Consider Worst-Case Scenarios
Kullberg also suggested planning for potential setbacks.
Consider things like job loss, medical emergency, your car breaking down, etc.
Assess Your Ability To Save and Invest
Morgan stresseed the importance of maintaining your financial goals.
Check Your Emotional Response
Russo pointed out that stress testing isnt just about numbers.
Be very clear on your timeline, said Russo.
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