Can you really afford to chase your dreams?

Can you really afford to chase your dreams?Photo from unsplash

Originally Posted On: Can you really afford to chase your dreams? – Bankless Times

 

The idea of following your dreams is one that appeals to a lot of people.

Some people may dream of being rich and successful, but not everyone’s dreams are compatible with being able to afford a comfortable lifestyle.

Some dreams may seem out of reach if they’re expensive or they might involve dedicating your life to a career path that doesn’t pay particularly well. Chasing your dreams might not be the best way to make life plans, but not all dreams are out of reach.

The key is to consider whether you can afford what you want and, if you can’t, how you could possibly make it more affordable or achievable.

There are lots of dreams that you might have and various steps that you might take along the way. But before you make a decision about whether something is the next step for you, you need to consider if it’s affordable.

Taking a New Job

A new job could be the right step to take to help you achieve your dreams. Maybe it’s a step up the career ladder or it will give you more opportunities for promotion. You could finally be getting into the field that you really want to work in after years of compromising with something else. Or maybe a new job is giving you the opportunity to earn more, move somewhere new, or work better hours. Whatever the benefits are of taking the job, it’s important to think about how it might impact you financially.

Sometimes a job can offer a number of benefits but it might pay less than your current role. Additionally, a new job could mean new expenses, such as a more expensive commute. It’s important to weigh up how a new job might require you to reassess your budget. Ideally, it would improve your financial position. However, if it doesn’t, are the other benefits that it offers worth a lower wage? Having more time to yourself due to a shorter commute could be more valuable to you than earning a little more.

Changing Careers

Even bigger than getting a new job is moving into a completely new career. If you’re changing what you do for your job, it could involve retraining or other steps to ensure you have the right skills and knowledge. You could also be starting from the bottom of the career ladder again, even if you have some valuable transferable skills. That could mean a loss of income, especially if you have to spend some time in education or training before you can truly begin your new career.

Changing careers can definitely alter your life for the better. It could make you a lot happier and it might lead to a better salary or better opportunities too. But there can be a period where you’re on a tighter budget or you have to work harder to get where you want to be. It’s often best to have some savings before making a career change. It could also be necessary to make some lifestyle changes so that you can adjust your expenses if you have lower earnings. Changing careers might not always be the right move, but you may have the opportunity to switch back if things don’t go so well.

Living on a Creative Career

Some career changes can be bigger than others. While some careers can pretty much guarantee you a good income and the lifestyle to go with it, others are much riskier. And if there is any type of career where you can face the most risk, it’s in anything creative. There’s a reason there’s a stereotype of actors working as restaurant servers and bartenders. Creative pursuits are difficult to earn money from, particularly if your aim is to gain some level of fame or notoriety. It can take a long time to reach a point where you can support yourself without requiring another job.

Going after this sort of dream is something that most people will find themselves unable to afford without another job or form of income. Unless you have plenty of savings or some other form of financial support, it’s very difficult to dedicate yourself to your creative goals full-time. Before deciding to pursue something creative, especially if you want it to be your full-time job, you need to consider the financial impact of it seriously. Most people take the sensible route of working on their creative pursuits in their spare time. Choosing a flexible job can help you to have more time to develop your craft while still earning enough to support yourself.

Owning a Home

Buying a home is a big dream for a lot of people. When you have your own home, no one else can tell you what to do with it – unless you belong to an HOA. Owning a home can feel like the ultimate goal that everyone should be aiming for, but it’s important to exercise caution before you decide if it’s for you. Not everyone benefits from owning a home, and it’s not always the right financial decision. There are various things that you should consider if you’re thinking about whether you can afford to go after your dream of owning a home.

The first thing that you might do when you’re thinking about buying a house is getting an idea of how much it might cost you. Research approximately how much you might be able to borrow so that you can look at what you might be able to afford. You can use a mortgage calculator to take a closer look at what you can afford. Input the price of the property, your down payment, and other expenses so you can work out what you can expect to pay each month. You should also check your debt-to-income ratio so that you have a good understanding of your eligibility for a home loan.

Of course, there are other expenses involved in owning a home too. You need to take the cost of maintaining your home into account before you decide if it’s the right financial decision for you to make.

Starting a Family

Starting a family is all some people think about. You might not care much about a high-flying career or owning all of the right things, but a family of your own can make life worthwhile. However, the question that many people are starting to ask themselves is whether they can afford to have a family. Raising children is expensive, from baby clothes and diapers to college tuition. Of course, people in all kinds of financial situations have children, but you might be wondering whether you can start a family and still have a comfortable lifestyle.

One thing that you may need to consider is what being able to afford a family means to you. Does it mean being able to survive on one income so that one parent can stay at home? Does it mean everyone being happy and comfortable, or does it mean being able to take regular vacations or send your kids to private school? Everyone has a different idea of what their family life might look like. Another thing to keep in mind is that circumstances can change. Your income or expenses can go up or down, which might affect your family life.

Starting a Business

Starting and growing a business is a dream for a lot of people who are financially minded. It offers the idea of independence and being in control of how you make your money. But creating a successful business isn’t an easy thing to do. It may involve having to build your business while working a full-time job, and you might need to secure investment from various sources to make it work. Quitting your job to run your business is definitely something that you should do with caution. It’s best to build up your business first before you consider whether you can be a full-time business owner.

Going Traveling

Traveling might be something that you want to do in the short-term or perhaps more long-term. Either way, you need to be able to support yourself as you travel. Many people will do this using savings, but some find ways to work as they travel.

However, this can become complicated due to the legalities of working in other countries. Before you decide to go traveling, you need to consider how much it’s going to cost you and come up with a budget. It’s also smart to think about what happens when your travels are over.

Retiring Early

Retiring early could be your ultimate goal, but it’s not an easy one. Many people achieve this goal through building passive income or perhaps through building wealth through investments, selling a business, or other channels. If you want to afford to retire early, you need to have a solid plan for how you’re going to do it. How much do you really need if you want to stop working at forty or fifty and never work again?

Chasing your dreams can be a lot more expensive than you think. Before you go after what you want, get a realistic idea of what it will cost.

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