Planning For The Unexpected
Planning For the Unexpected | How Can You Ensure Financial Security for Your Family?
When you think of financial planning, saving for a college fund, planning retirement, or even investing in the stock market are probably the first things that come to mind. While many will get caught up in preparing for the big moments in life, an often-overlooked consideration is financially planning for the unexpected. At Maier & Associates Financial Group, we believe it is important to help our clients work toward financial security – this includes being prepared for any and all unforeseen circumstances.
Unanticipated events such as disability, accidents, or even the unfortunate death of your spouse could severely impact your ability to generate income and maintain you family’s financial security. It is critical to be prepared for anything and everything with liquid assets, the appropriate insurance protection, and emergency savings. While this type of planning is never pleasant to discuss, it’s imperative that you have a financial plan in place to deal specifically with emergency circumstances.
Financial Planning for Emergencies
The first thing you need to do is establish an emergency fund. This financial emergency fund should consist of a reserve of cash or liquid assets equal to at least three months of income. This fund will be your safety net should an unexpected emergency arise, including illness, accident recovery, death, loss of job, etc.
Having an emergency fund is the first step in emergency preparation, and is a fairly easy idea to contemplate. The next step is thinking long-term about your finances should an unfortunate circumstance present itself. Disability and life insurance plans/policies are the most effective and necessary steps you can make to keep you and your family secure.
Adopting a personal policy of judicious spending, as well as avoiding unnecessary debt, will do wonders in ensuring your financial security. Credit cards are very tempting when it comes to making lavish purchases that you might otherwise avoid – it’s important to avoid this temptation since credit card debt can be crippling to your overall financial health. Try to avoid the buy-now-pay-later trap and remember: if you can’t afford it today, you might want to reconsider making the purchase.
Let Maier & Associates Financial Group help you get started
Since financial security can mean different things to different people, we here at Maier & Associates will work with you to help identify goals and develop a plan that works with your definition of financial success.