While some significant life events can’t be predicted, there are others you can prepare for, to manage the impact on your financial wellbeing – and your stress levels!
Affinitas Capital Senior Advisor, John Purl, identifies 5 major land mines to be prepared for well ahead of time.
- The birth of a child
The loss of income due to one parent stopping work, coupled with the increased cost of living (those nappies are pricey!) means extra pressure on household finances. Save the extra heartache by getting your financial ducks in a row well before the big day.
What would you do if you lost your job tomorrow? The lump-sum received in the event of redundancy can go some way to easing the immediate financial burden but it’s unlikely to cover expenses in the long term. Uncertainty of future employment and income is hugely stressful. Make sure you have a contingency plan.
- Increased Lending Rates
Evidence shows that many Aussies have high debt. An increase in lending rates reduces household surplus cashflow – which may already have been stretched due to the high living cost in this country. Speak to your financial advisor before you take on any extra debt so that you’re fully prepared for all of the implications.
- Illness or injury
Income protection – like all insurance, you don’t need it until you need it. Say no more. You know what to do.
- Market Pull Backs
Especially if you fund your living expenses from superannuation, a GFC style market pullback can be a major stressor as you see your asset position diminish with no certainty on when it may recover.
Are you prepared for all of these financial possibilities? Get in touch to discuss your plan for financial peace of mind. You’ll be glad you did. Scout’s honour.