Handling Life's Surprises

No matter how well you plan, life has a way of throwing surprises at you. Life’s major events can’t always be anticipated, but a little forethought can help you succeed in ways you never dreamed possible!

Be Prepared

Anticipating the unknown can be overwhelming. Try breaking big issues into small ones and focus on these areas one at a time when preparing a plan:

  • Income disruptions - Unexpected changes can affect your monthly cash flow. Plan for this possibility by creating a budget that lets you manage your expenses each month. And be diligent about putting the remainder aside as savings. Financial professionals agree that a smart personal preparedness plan includes an emergency fund that could cover your bills for three to six months.
  • Eliminate debt - This is one of the best ways to take control of your finances. If you have credit card debt, start with the card that has the highest interest rate. If you can’t pay the entire balance at once, make a plan to reduce the balance systematically.
  • Review your insurance coverage - Common types include life insurance, disability insurance, homeowners insurance and health insurance. Know what your options are in each of these areas if you lose your job or are suddenly forced to consider medical issues you hadn’t expected.

Don't Go it Alone

Being prepared also means establishing and maintaining a network of trusted advisors – family members, friends, and professional associates who can lend their expertise and assistance when something unexpected happens. Establishing and maintaining a relationship with a financial advisor or professional can be crucial here. Maintaining that relationship over time can help you in many different ways – especially if life throws you a curve.