Even when you think you’re doing everything right financially, things can still go wrong. Job loss, divorce, and illness can all wreak havoc on your finances, as can car accidents, natural disasters and — well, you get the idea.
What do you do if an unexpected financial emergency costs you everything in your emergency fund and more? How do you bounce back from a financial setback, whether you get rear-ended, get divorced, or find yourself in the middle of yet another recession?
At Kiplinger, Chartered Financial Consultant® Mike Piershale suggests taking action right away:
Start by facing the reality of your situation. This may be easier said than done, especially when you’d rather avoid the anxiety and guilt from facing up to the reality that you are not financially prepared.
From there, Piershale offers what you might consider the Standard Financial Advice:
Make a budget. Cut every unnecessary expense, if necessary.
Figure out how to increase your income. Get a job if you don’t have one; get a side hustle if you do.
Begin putting as much money as possible towards whatever area of your finances was hit hardest by the setback, whether you’re paying off debt, rebuilding your emergency fund, or trying to hit your retirement savings goal.
This is good advice, of course—but I wanted to get a little more specific, so I put together a collection of the best Lifehacker advice on how to handle some of the most common financial setbacks.
Take a look and share your thoughts. If you’ve successfully rebuilt your finances after an unexpected setback, what advice do you have for other people in similar situations?
Nobody is immune to layoffs. Whether you're an executive or an entry-level hire, layoffs can - and probably will - affect you at some point in your career. Consultants and freelancers have a bit of a buffer thanks to their multiple income streams, but when their industry suffers, they suffer too. (There's nothing like losing four clients in a single month.)
It's a fact that many marriages end in divorce. There are all sorts of reasons for this and the process, even in a "conscious uncoupling" where both parties agree to remain on friendly terms, there is a lot of pain and heartache. Some social commentators point to the ease of divorce being the reason so many marriages breakdown. But how do you get divorced?
No matter how fast medicine moves us towards treatments, preventive medicine will always be the most effective and cheapest way to keep healthy. In this post, we'll run down some common women's health screening tests, when you should get them, and what you're in for when you walk in.
No matter how fast medicine moves us towards treatments, preventive medicine will always be the most effective and cheapest way to keep healthy. Yesterday, we went over the most common screenings for women. Today we'll look at men's health screenings, when you should get them, and what kind of experience you're in for.
Accidents and disasters
It's smart to periodically check in on your goals, spending plan or investment portfolio, but you also want to reevaluate your monthly bills and expenses every now and then, too. If you haven't looked for a better car insurance policy for a while, it might be time.
Even if you don’t live in a hurricane-prone area like I do, there’s no excuse for not having an emergency kit ready for the worst-case scenario, whether it be a bush fire, a flood or an earthquake. And yes, the latter can happen in Australia - remember Newcastle in 1989?
Everyone seems to be using the dreaded R word — recession — this week as the stock market looks topsy turvy, bond yields go bonkers and the trade war between the US and China drags on. But those events don’t mean that a recession will take place tomorrow. It may not even take place next month, in the next six months, or even next year.
There are a few signs of economic downturn that can, when combined in some way, indicate a recession is brewing.
If you’re like many, the recent swings of the stock market aren’t necessarily keeping you up at night—only around half of us are invested in the stock market at all, and of that, “the top 10 per cent of wealth holders in the United States own an estimated 85 to 90 per cent of stocks,” according to the Washington Post. Rather, the thought of a weakening job market is what really matters to you. A dip in the S&P doesn’t mean nearly as much as your company laying off more workers.
When times get tough, you need to be prepared. "I'm not ready" won't matter if the economy is in swing - so it's best to think about these things earlier, and before it's too late. With that in mind, here are a couple of steps you can take to ensure your finances are secure.