One thing many of us are aware of, or is at least in the backs of our minds, is that life is unpredictable and can change in an instant. Sometimes, a major change may be predicted and can be planned for. However, oftentimes a major change comes completely unexpected. It could come in the form of a sudden job loss, a death in the family, or many other forms, all of which could leave you and your family’s financial future in question.
And while having financial resources or an impressive resume may help mitigate some of the uncertainties, they don’t guarantee being able to completely sidestep a financial setback. According to the National Endowment for Financial Education, at least once over the course of their working lives, six in 10 workers will go a full year or more without earnings.
Before you or a loved one find yourself in an unexpected financial shock, there are a few different areas to consider focusing on, including:
- Your budget: if you have a sudden loss of income, it becomes much more imperative to examine where money is flowing out. If you are already tracking your spending, it becomes easier to see what expenditures are a must, and which ones are luxuries. If you don’t track your spending, it’s time to gather your bank and credit card statement to see what changes need to happen.
- Your emergency savings: according to the CNBC Your Money Financial Confidence Survey, which interviewed 4,366 American households, only 45% of respondents said they have any emergency savings. Of those that said they have emergency savings, 55% said they have more than $10,000.
- Your insurance coverage and/or asset protection plan: do you know what your homeowner’s insurance policy covers if your house burns down? What if someone gets hurt on your property? Are your assets protected?
Ideally, you would always be perfectly prepared to ride out the financial shock and the uncertainty it has created. However, when our lives are upended, the loss of control we experience can make it tough to believe we are okay. The CFPs and team at Impel Wealth Management are ready to help you, your friends, and loved ones create a custom financial plan with the steps you can take to help mitigate financial uncertainty and help keep your family on solid financial ground. It is what drives us as we continue to “Move Life Forward” together.
© 2023 Nathan Ollish
The views stated are not necessarily the opinion of Cetera and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results