This has proven to be a financially erratic year. At the same time, families have a great desire to pursue the American Dream. Yet they must contend with unanticipated natural disasters, an erratic stock market, tariff wars that have yet to be defined financially and a myriad of other economic variables that can make pursing the American Dream scary.
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During such periods of great uncertainty, one must be clear about their goals and desires, so they can create a strategic plan to have an enjoyable life. In simple terms, the American Dream can be defined as the opportunity to experience upward mobility economically and socially, based on one’s ability to achieve success through hard work and personal determination.
It varies based on individual belief, goals and desires, coupled with the willingness to dogmatically pursue those stated desires. It can include finding a life mate to build with, the purchase of a home, starting a family and earning money doing what you love.
All dreams have a financial cost associated with them, and in uncertain financial times, what should families consider when pursuing the American Dream in 2025? What is the cost, and how can one achieve their goals?
As a financial planning expert, here are the three areas that I recommend clients focus on in the pursuit of the American Dream.
Getting married, having children and purchasing a home and/or a car all require resources. Taking the time to do the research and understand the cost to achieve that goal becomes critical.
For example, if someone desires to get married in 2025, how large or small is the wedding? Will there be a reception and if so, where? Knowing the financial bottom line helps you to budget more effectively and to see if that specific dream needs an expanded time horizon.
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Pursuit of the American Dream should be an enjoyable marathon and not a sprint. Deciding what to pursue first helps a person to focus and set reasonable financial targets that are achievable based on your current standard of living.
For example, if the desire is to purchase a home, a great strategy to implement is to first determine the cost of the home you desire to purchase. The next step is to figure out the mortgage payment and all household expenses associated with maintaining the home.
Once you have calculated that cost, review your current expenses and identify the financial difference between your present household expenses with the anticipated future expenses. This will allow you to realistically gauge your financial readiness.
The cost of the American Dream varies according to one’s socio-economic status. Working with an expert will not only help you define the financial costs associated with your goals and objectives, but they will also help you accumulate, preserve and transfer any assets to the next generation, providing you with a vision to build a legacy.
For example, if starting a family after marriage is a part of your dream, making sure the children are well-educated has a cost. As you advance in age, making sure your retirement and long-term care needs are adequately addressed has a price tag that aligns with your desired standard of living.
Knowing how to project the financial needs of your future will help you achieve and maintain the American dream.
Pursuing the American Dream is defined by your personal ambitions and life desires. While creating a life map, give yourself permission to adjust or modify your dreams as you gain more experience, shift course in life and even decide what you desired early in life may not feel as necessary today as it did years ago.
However, your quality of life does have a price tag associated with what is most important to you. The sooner you define and consider the costs of living your dreams, the better positioned you will be to succeed and enjoy life as you envision.
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This article originally appeared on GOBankingRates.com: I’m a Financial Planner: 3 Things To Consider When Pursuing the American Dream in 2025
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