What life events can affect my personal finances?
Life is full of wonderful changes and events. But along with these life changes come new financial needs. Unfortunately, many people don't fully recognize that even small life events can have a huge impact on your ability to save and plan for the future.
Failure to identify and readjust your savings and investment strategies when appropriate can have far reaching impacts, resulting in challenging and often unfavorable financial outcomes.
The list of life events below could help get you thinking about when you might need to review and readjust your financial strategy:
- Buying a new home
- Selling your home
- New marriage
- Birth or adoption of a child
- A major disability or long-term illness
- The death of a spouse
- A job loss, change or promotion
- Higher education needs
- Caring for aging parents
- Getting closer to retirement
- A reduction in health insurance benefits
- Receiving an inheritance
Create a financial plan
If you recognize any of these events in your life, then it may be time to develop an action plan. On your own or with a financial planner, take the time to review your income, savings, and where and how your money is invested. Put together a financial plan that considers your immediate needs, short-term goals, and future objectives, carefully matching up your investments to certain timeframes or goals. Certain life events may also call for reviewing your life insurance coverage to make sure that your policies are keeping up with your family's current financial needs.
By regularly reviewing your finances and identifying where you need to make changes, you can make priority adjustments that will bring your financial goals in line with your current life situation.
Learn more about financial planning and budgets.