Sometimes, life throws you curveballs and you find yourself in situations that you could never have prepared for. Often, those situations can land you in a lot of financial trouble and if you’re not prepared for it. It can make an already bad situation can get a whole lot worse.
Most people don’t think about the financial implications of these life events but it’s worth considering if you want to avoid getting into trouble.
Divorce is something that you never plan for, when you decide to get married it’s for life. But sometimes, things just don’t work out and you find yourself getting a divorce later in life. Obviously, you need to deal with all of the emotional difficulties of divorce but it’s important that you don’t forget about the financial implications. The cost of the lawyers etc. to deal with the divorce proceedings is one thing, but you also need to consider the change in your financial situation. When you’re married, you may have two earners in the household splitting all of the bills. Now you’re going to be on your own and you’ll have to deal with all of your expenses on the one income. If you weren’t working and your partner was the sole breadwinner, you’ll be in a more difficult situation. When you’re going through the process of divorce, look over all your finances and start drawing up a new budget so you can survive on your own financially.
The death of a loved one is an emotionally traumatic time and your finances are probably the last thing you want to be thinking about but you need to. There are a lot of costs involved in the immediate aftermath of the loss of a loved one; you’ll need to find local funeral services to handle the burial and the service and you’ll need to pay lawyers to deal with the handling of their estate and the execution of the will. You may also be taking some time off work while you deal with the loss so you need to factor that in as well.
Depending on where you live, you might fall victim to a natural disaster at some point in your life. If you live somewhere that gets a lot of natural disasters there will be measures in place but that doesn’t mean you bear some financial burden still. Damage to property is the major cost you’ll have to cover; even if you’ve got insurance it might not cover everything so you’ll have to pay to replace things.
You’ll never see these things coming so you need to start preparing for them now, otherwise, you’ll be in a difficult position when they arise out of the blue. Start an emergency fund right away, you don’t need to put loads in there just start adding whatever you can afford each month. Once you’ve got a healthy emergency fund set up, you’ll be prepared to deal with these problems. If not, you’ll end up spending all of your savings or borrowing money to cover the costs.