Life has a habit of coming at you fast and without warning that can significantly impact your finances. These big events can range from changing careers, changes in marital status, buying a new home, or retiring. Each of these life events can send your world spinning and put your finances in turmoil if you aren’t adequately prepared. While you may not see a particular event coming until it happens, you can still take the time to invest in better financial planning to help make the transition easier and keep your finances healthy.
Have the Right Attitude
Whether you’ve had months to prepare or if something unexpected happened, how you respond to that situation determines the success of the transition. Whether it’s an unforeseen circumstance that has happened to you or your spouse, finding ways to approach the change with a positive mindset will help reduce stress and put you in a better position to react and not overreact.
Create a Financial Safety Net
It’s challenging to plan for how big of a safety net or cushion you should have baked into your finances. However, having something to fall back on during times of stress and transition can help make the process go as smoothly as possible. Whether it’s setting up an automatic transfer from your paycheck into a separate savings account or deciding on setting aside a set amount that will provide that cushion and then set up additional contributions, you can ensure you have something to fall back on in times of trouble.
Establish Your Priorities
There will always be bills and expenses that rank higher on the priority list than others in terms of your finances. In times of financial distress, having a plan to address the highest priorities can help ease some of the tension and stress you feel. With these responsibilities out of the way, you can begin to focus on pivoting and finding ways to get back onto stable financial ground.
Prepare for Known Transitions
While you won’t see every major life event coming that can upend your financial position, taking the time to prepare for the known transitions can help you in the long run. Taking steps to prepare for the known transitions will help create that financial safety net that can be used whenever something expected or unexpected happens. By doing the research, you can identify the potential expenses, challenges, and hurdles and take the fear of the unknown out of the equation.
Having some form of insurance in the wake of major life events can help ease some of the anxiety you may feel in these uncertain times. By working with a team of experienced financial planners like those found at Total Resource Financial, you can take the necessary precautions to build a safety net when life happens unexpectedly. Contact our team to learn how we can help today!