A major life event can be something wonderful, like getting married or having a baby. It can also be something difficult, like going through a divorce or experiencing the death of a loved one. No matter what the event is, it can be financially challenging. That’s why it’s so important to have a financial plan in place after consulting a reputed advisory firm like AG Morgan Financial Advisors.
There are different phases of financial planning during a major life event. The first phase is pre-planning. This is when you gather all of the necessary information and start to make some decisions about your finances. The second phase is during the event. This is when you put your plan into action and make sure that everything is on track. The third and final phase is post-event. This is when you evaluate your finances and make any necessary adjustments to your plan.
Here are some tips for each phase of financial planning during a major life event:
- Start by gathering all of the necessary information. This includes things like your income, expenses, debts, and assets.
- Make a budget and stick to it. This will help you keep track of your finances and make sure that you’re not spending more than you can afford.
- Create an emergency fund. This will give you some financial cushion in case something unexpected happens.
- Think about your long-term goals. What do you want to achieve financially? Create a plan that will help you reach those goals.
During the Event:
- Keep track of your earnings and expenditures, pay your bills on time, and stick to your budget.
- Save as much money as you can. This will help you stay afloat financially during tough times.
- Communicate with your spouse or partner about money matters. It’s important to be on the same page when it comes to finances.
- Make smart decisions about credit. Avoid using credit cards unless absolutely necessary, and pay off your balances in full each month if possible.
- Evaluate your finances and make changes to your budget if needed.
- Save up for future events so that you’re not caught off guard financially next time around.
- Build up your emergency fund so that you have even more financial cushion in case of tough times ahead.
- Create or update your will and estate plan. This will protect your assets in case of death or incapacity.
It’s no secret that creating and sticking to a financial plan can be difficult. Whether you’re trying to save for a specific goal, get out of debt, or simply improve your overall financial health, there are a number of factors that can make it challenging to stay on track. But the good news is that with a little planning and effort, it is possible to create a financial plan that works for you.
A major life event can be a time of great joy or great sorrow—or both! No matter what the circumstances are, it’s important to be prepared financially for whatever might come your way.
By pre-planning, staying on top of things during the event, and post-eventing smartly, you can weather any financial storm that comes your way—and come out stronger on the other side!