Today we’re going to be taking about being financially prepared for life events. This is important because it’s so easy to make progress with your finances, only to have the rug pulled out from under your feet by something unexpected. Or even something that IS expected…

Everything You Need To Know

• Life events – like what?
  1. Marriage – Combining finances, setting shared financial goals, managing joint expenses, and potentially adjusting tax status.
  2. Having a Child – Increased expenses for childcare, education, healthcare, and general living costs. Also, considerations for wills, insurance, and future savings (e.g. university funds).
  3. Buying a Home – A large upfront cost with ongoing mortgage payments, maintenance, and property taxes.
  4. Career Advancement – Increased income, but possibly higher taxes, new financial goals, or lifestyle inflation.
  5. Starting a Business – Potential financial risk with initial investments, cash flow challenges, and possible instability
  6. Receiving an Inheritance – Potential windfall that requires careful management to avoid unnecessary tax liabilities or poor financial decisions.
  7. Job Loss or Career Change – Loss of income, need for emergency savings, and possible retraining or relocation costs.
  8. Divorce or Separation – Legal fees, division of assets, changes in household income, and potential child support or alimony payments.
  9. Serious Illness or Disability – Increased medical expenses, loss of income, and the need for long-term care planning.
  10. Death of a Family Member – Funeral costs, potential loss of income, and the need to navigate life insurance, wills, and estate planning.
  11. Caring for Aging Parents – Increased expenses for medical care, assisted living, or home modifications.
  12. Children’s Education Costs – Private schooling, university tuition, or vocational training expenses.
  13. Relocation – Moving expenses, potential changes in cost of living, and job market considerations.
  14. Retirement – Shifting from income generation to income withdrawal, managing pensions, investments, and healthcare costs.
  15. Unexpected Large Expenses – Legal issues, home repairs, or emergencies that require significant financial resources.
• Being prepared means mastering the 3F’s – Foundation, Forward-looking, Flexibility.

Everything You Need To Do

• Foundation – Emergency fund, workplace benefits and personal insurance.
• Forward-looking – consider what may happen and what is likely to happen.
• Flexible – keep things flexible so that we can be able to make changes as needed.
• If big events happen – take your time, seek help.

---