Question: I’ve got a couple of major life events coming up — definitely a wedding and then hopefully soon after, a baby! I’m intimidated to even begin to plan for expenses like these. How do you do it without blowing up your entire life budget?
Answer: Let’s start with a universal truth: big life events come with big price tags — and even bigger emotions. Whether you’re planning a wedding, expecting a baby, or bracing for both in the same 12-month stretch (godspeed!), the key to staying financially grounded is knowing what you need when, and building a plan that keeps you in control — not scrambling to recover.
This is where so many of us get stuck. We know how to save. We’ve mastered the emergency fund. We’re dutifully contributing to our retirement accounts. But what about all the in-between goals — the joyful, life-changing, expensive ones that don’t come with a built-in savings plan?
The answer? It all comes down to timing, prioritization, and a little strategy.
Start with the Timeline
The first step to planning for a major life expense is asking: When do I need the money? Because when you need it determines where to keep it.
- Less than 5 years out? Stick with savings, CDs, or other low-risk, easily accessible accounts. That down payment, maternity leave fund, or wedding deposit shouldn’t be subject to the whims of the market. You want stability, not surprises.
- 5+ years away? You’ve got options. That’s where investing — even conservatively — can give your savings a meaningful boost. A diversified portfolio designed for a moderate timeline can help your money grow while still limiting risk.
Here’s a quick example: If you put $20,000 into a basic savings account earning 0.06% interest (which is actually above average for many big banks), you’d earn just $120 over 10 years. But if you invested that same $20,000 in a conservative portfolio — say, 40% stocks and 60% bonds, with a historical average return of around 6% annually — you could end up with about $32,795. That’s a gain of $12,795, without needing to pick stocks, time the market, or take on big risks.
That’s not just a difference. That’s opportunity.
So… Where Should I Put This Money?
Once you know what you’re saving for and when you’ll need the money, the next step is deciding where to stash those dollars. The answer depends entirely on your time horizon — in other words, how far away that expense really is.
Here’s a quick breakdown:
- If you need the money in less than 3 years: Keep it safe and liquid. A high-yield savings account (HYSA), money market account, or short-term CD is your best bet. You won’t earn much in interest, but you also won’t risk a market dip right before your baby shower or venue deposit is due. Bonus: As of 2025, many HYSAs are paying over 4%, which is far better than the 0.01% we lived with for years.
- If your goal is 3–5 years out: You’re in the gray zone. You might consider a mix — keeping some in cash for flexibility, and putting the rest into a very conservative investment portfolio (think mostly bonds and a small percentage of stocks) to give your money a chance to grow, with relatively low risk.
- If your timeline is 5–10 years or longer: This is where investing starts to make sense. Whether through a diversified DIY portfolio, a digital advisor, or a financial planner, putting your money into the market gives it the potential to grow meaningfully over time. The longer your horizon, the more risk you can typically afford to take — and the more potential upside you unlock.
Just remember: whatever route you choose, make sure it matches your comfort level with risk and your ability to leave that money untouched until you need it.
Don’t Over-Prioritize the Short Term
This part’s hard to say out loud, but here goes: Don’t let near-term goals completely derail your long-term financial stability.
Yes, your child deserves the best. Yes, your wedding should be beautiful. But not if it means you pause retirement contributions, drain your emergency fund, or rack up debt you’ll be paying off during their first day of kindergarten.
The best way to protect your future self is to keep your retirement contributions going, even while saving for short-term goals. Think of it this way: you’re not choosing between one or the other — you’re just committing to a smarter distribution of your dollars.
Set up automated contributions to both. Even if you can’t fund both goals fully, contributing steadily to each will help you make consistent progress without falling behind in other areas of your financial life.
Bottom Line
If you’ve got a big expense coming up — a wedding, a baby, or something else entirely — you don’t have to put your financial future on hold to make it happen. Instead:
- Start with your timeline
- Align your savings or investments with the right tools
- Keep retirement contributions steady
- Make peace with progress, not perfection
Most importantly? Don’t wait until you “know everything” to take action. You don’t need to be a financial expert — you just need to start. And once you do, you’ll be amazed how quickly those goals come within reach.
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