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Financial Planning for Life’s Unexpected Events

Life always brings surprises, some of them good, some of them not so good, and many of them that require some financial input from you. That’s why it’s so important to plan, as best you can, for life’s unexpected events. By preparing now, you can ensure that those tough financial moments are a little easier to deal with when they do arrive…

Financial Planning for Life's Unexpected Events - golden piggy bank
Bildet er tatt av Thomas Jh. Baumann fra Pixabay

Insure for What You Can

These days we have insurance for everything from a broken phone to pet illnesses and even life insurance that will only pay out once we die. If you’re serious about planning for life’s unexpected events, financially at least, it’s a good idea to take out as many insurance policies for as many of the biog issues that are likely to affect you as possible. That way, when the worst happens, you won’t have to worry about the financial side of things at all.

Start an Emergency Fund

Sure, payday loans are available to many people at a push, but when those financial emergencies come around unexpectedly, it’s a never a bad idea to have a pile of money set aside to deal with them. That’s where the humble emergency fund comes in. Basically, an emergency fund is simply an amount of money that you set aside and do not touch until a serious financial emergency comes along – things like job loss, huge vet’s bills or a period of illness. Thus, emergency funds only work when you put money aside regularly and leave it untouched until it is really needed.

Stay Out of Debt

It may not always be possible, but the more you can do to stay out of debt the better Not being in debt means you will have more money available to deal with life’s emergencies and one less thing to deal with. Debt is the source of so much stress that it is worth staying out of it, or if you already have debts, looking at ways to minimise them as soon as possible. If that’s something you are struggling with, there are people who can help you.

Have a Backup Budget

Creating a backup budget, that you can fall back on when your life doesn’t go as expected is a really good idea. It will help you to immediately identify the expenses you can cut back on so that you can free up some much-needed cash and get back on financial track as soon as possible when things get tough. Make that plan now when you’re in a good place and thinking clearly, and you can spring into action right away.

Make a Will

None of us likes to think about dying, but the fact is we will all die one day and when that happens, we don’t want to leave a financial mess behind us. That’s why every adult should make a will as soon as possible. Then, if the worst does happen, those who are left behind will know exactly what is expected of them and where the money will be going.

Plan now and cope better when those unexpected life events show up! 

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