Avoid a financial crisis
Even the smartest budgeters sometimes come face-to-face with an abrupt, unexpected financial challenge. Often, these issues come hand-in-hand with a major life event – losing a job, splitting from a spouse, or even receiving an inheritance. The emotion surrounding these events can make for murky-minded financial thinking.
One way to make sure you don’t fall victim to brash, emotional money decisions: plan in advance for the unexpected. We’ve compiled a list of intelligent steps you can put in place now to help you handle the major life events that can throw you into a financial tailspin.
Protect your money during a divorce
You’re in love – so why plan for your romance to go awry? Should your relationship go sour, chances are you’ll be much more caught up in immediate concerns than taking a long view of smart financial moves. And that doesn’t even factor in the cost of the divorce itself – a financial burden which experts say can “vary by a factor of a thousand”.
Save yourself the added pain and suffering of financial woes by taking these simple, cautionary steps while you’re still married. They won’t hurt your overall finances and you may, someday, be grateful that you did.
Plan for a disaster
Very few people plan adequately for a natural disaster – like a typhoon, hurricane or earthquake – to strike, and with good reason: if we are lucky, such an event may never happen at all. But nevertheless, it is relatively easy, and incredibly useful, to have a financial and personal plan in place to help you anticipate the unthinkable.
With a little bit of organization and shopping, both for good insurance and a disaster kit, you can have some peace of mind that you have what it takes to get through a catastrophe. Here’s what should always be in your supply kit – and what you should discuss with your family to ensure everyone is on the same page.
Don’t let a windfall sink you
It’s the kind of “problem” many of us dream of having: either by way of an unexpected inheritance, a huge bonus, or even winning the lotto, you’ve suddenly come into a huge chunk of money. But for many, a windfall like this can be rife with financial issues.
Before you start spending – and handing out cash like a human ATM machine – take a deep breath, and read this guide to ensure you make the most of your new found good fortune.
Make it work on a single salary
As a couple, you’ve promised to be with each other through richer or poorer – but what happens when a two-income household suddenly only has one? Sure, it’s a little easier if one of you has planned to quit your job in advance, but the financial implications of losing an income stream can have an immediate and painful effect on your family finances.
You can navigate the loss of one income – if you know what it will take and where you can cut your budget. See how you can prepare for living on a one-paycheque budget – and even save some money in the process.
Go on the trip of your dreams
Have you been saving for a dream vacation? The trip of a lifetime can easily run in the thousands. That doesn’t mean you shouldn’t go – but it does mean you should plan carefully, and ensure that your globe-trotting aspirations don’t negatively impact other financial aspects of your life.
Before you book that ticket, learn the common mistakes travelers make when planning a vacation – and discover a few online tools designed to help you save big.
Content Source: http://www.bbc.com/capital/story/20131108-fix-your-financial-life
