When it comes to being prepared to handle unforeseen events, there’s no time like the present!
In this month’s challenge, we’re helping you get on the path to being financially prepared for life’s unexpected turns.
Prepare for Peace of Mind
If you’re not sure where to start, you’re not alone, as it’s natural to plan for the best-case scenarios as we take on the world with optimism. At stnce, a positive outlook is a part of our identity, but even as we focus on securing the future of our dreams, we value peace of mind as well.
Your personal preparedness is just that, as everyone’s priorities are a personal reflection of where they’re at in life, who they share that life with, and what role they may play for others.
Know Your Role
To kick things off, remind yourself of the most important personal touch points in your life. Do you have kids? A spouse? Are you an only child with aging parents? Is there someone else in your life who depends on you every day?
Once your mind is focused on how your life is inextricably linked to others, get familiar with this list to determine which area you may need to focus on first:
- Making a will
- Building an emergency fund
- Life insurance
- Power of attorney
- Estate planning
One or more of these topics may be relevant to you, so let’s dig a little deeper with some exploratory questions. Grab a notebook, pen and answer all of the questions that are applicable:
- Who are your dependents?
- Do you own property? If so, what’s the status of your mortgage?
- What are your other assets?
- If you had a financial emergency, how long would you be able to support yourself and others?
- Do your parents, or anyone else post-retirement in your life, have a plan for their estate?
Just by writing out these responses, you’ve put yourself on the path to peace of mind by sharpening your priorities and setting the stage for next steps.
Keep your answers somewhere safe until our challenge check-in, when we’ll take a closer look at these topics and share some handy resources to help you “expect the unexpected.”
In the meantime, have a look at our article from Borrowell on ways to improve your credit score, which is also a great way to gain some peace of mind for the future!