September 15th, 2020
Life Happens… How to Prepare for the Unexpected
In your 20s, 30s, and even beyond you make many life-altering decisions. You also experience things you may not have seen coming (hello, COVID-19!). Some of these events may be bad and some may be good, but they all have one thing in common: they are bound to impact you financially in one way or another.
The best thing you can do is to plan; it’s as simple as that!
Common life events include marriage, births, and deaths. While you can plan some aspects of these events, as demonstrated by COVID-19, life happens and may interfere with your original plans.
So how exactly can you plan financially for the unexpected curveballs life may throw your way?
Start by saving your money.
First, create an emergency fund by setting a little bit aside monthly or annually. Over time, we want to build this up to 3-6 months of expenses. Emergency funds are useful for everyone across the board, and you are never too young or too old to start one.
Depending on your individual circumstances, you may want to buy a life insurance policy. There are numerous types of insurance policies designed to satisfy different needs and offer protection for various scenarios. This is definitely something to consider while young even if you don’t think you need insurance because, depending on the type of insurance you purchase, premiums tend to run cheaper for young, healthy adults. Additionally, we recommend you begin to think about and draft an estate plan. This plan will alleviate stress for many individuals involved.
Start taking control of the things you can’t control by creating a plan. Save your money. If you ever feel lost or confused along the way, financial planners are there to guide you and help steer you in the right direction.