There’s nothing like life for throwing curveballs and though you should hopefully be prepared and have some emergency funds, there may be some financial setbacks you have to face along the way.
The main thing to remember is that most of the time, these financial troubles are fleeting and with some smart money management, you can get back on track. Don’t waste time feeling guilty about the situation or panicking, just get on with setting some new goals to sort it out.
If you are aware of what the problems could be in the future, you can start to build your emergency funds now. You should also take out the relevant insurance to cover you should disaster strike.
Getting a Divorce
One of the most difficult times in anyone’s life, divorce is painful emotionally as well as financially. This is not the time you want to be spending going over your finances but that is just what you need to do. You first need to make a list of all your incomes and outgoings to figure out how whether you will be able to stay afloat or if you need to dip into your savings for the time being until you can find another income stream.
Many couples use alimony as a way to balance out what each partner gets. This is essential to maintaining the lifestyle of each partner after the divorce. You can read more about alimony online or ask your family lawyer for more advice.
Losing Your Job
In a boom and bust working environment where many people are now doing project work or ‘gigging’ rather than holding down a regular job, there is no shame in losing a job. Whether you are simply not suited, have fallen foul of a bust or you have chosen to leave for other reasons, you will need to get your finances in order as soon as possible.
The first thing to do is to get your CV in order. It might be worth asking a recruiter in your industry for some advice or asking friends to check over it. If it has been a while since you interviewed, you should also ask a friend to help you practise talking about yourself – this can be difficult when you haven’t had to sell yourself in a while, so it is worth taking some time to rehearse some answers.
Losing Your Home
An accident like a fire or a flood can have a serious impact on your home and you may even lose it altogether. While this is an unlikely event, it is something that you can overcome with the right planning. First of all, you must have homeowners insurance to cover you in this event. This is something you should look into now before a disaster can occur.
If you do lose your home, the main thing to focus on is where you will stay now. Friends and family may be able to help, but you may also be able to rent somewhere close by with the help of your insurance company.