Preparing for the unexpected can be overwhelming, but emergency preparedness, like having a bare bones budget, can alleviate stress in an emergency.
Creating a financial strategy may seem like an overwhelming undertaking, but if you take the time now to prepare yourself, you will be able to enjoy more of what you love to do in the future. As you start to transition into your next career phase or retirement, you will probably want to minimize your financial risks.
But even when you do your best to save responsibly and get your fiscal ducks in a row, life can throw curve balls. The good news is that a sound financial strategy can help you deal. Here's a checklist:
Your financial plan should include an estate plan, which can help lessen taxes, shield your beneficiaries, and avoid the cost and hassle of probate. Everyone needs legal documents that communicate their wants and needs when they no longer can.3
One of the easiest ways to prepare for emergency situations is by compiling a list of your accounts and providing instructions for accessing your financial information. This is especially critical in the digital age.
1 Trent Hamm, “A Guide to Building an Emergency Fund,” The Simple Dollar, March 13, 2020. TheSimpleDollar.com
2 Jeff Kinney, “Renters Insurance: A U.S. News Guide,” U.S. News & World Report, May 14, 2020. USNews.com
3 Julie Garber, “5 Reasons You Need an Estate Plan,” The Balance, Sep 18, 2020. TheBalance.com