For many people, certain life events stand out as being very important – they may even define the course that our lives take in the future. Life events such as having a baby, suffering the stress of being retrenched, getting older, or starting your own business are all possibilities for most of us, yet a lot of people underestimate the financial impact of these common occurrences.
Many clients approach the Northwood team with financial challenges which stem from events which have changed their lives. Because it is always easier to plan for an event than to deal with it once it has happened, we are launching a series of blog posts dealing with the financial implications of some common events which may have a big impact on your financial future. By helping you to plan for these events, we hope that your personal and financial life will benefit from the security that comes with being prepared.
Life Events With the Greatest Financial Impact
The life events which are most important to us are often the ones that have the biggest financial impact too. Getting married, having children, and going through the process of getting older are definitely high on the list of important financial life events. In addition, the life events that we don’t expect to happen can have a serious impact on our financial lives too.
For a working person, the threat of losing permanent employment and being unable to make monthly payments or cover financial commitments is one of the most stressful situations to be in. Though you may not be able to avoid retrenchment, recognising that it may happen and planning for the worst case scenario will allow you to survive the financial shock of losing your job.
Having a Child
A new member of the family brings great joy and excitement, as well as a number of personal and financial responsibilities. If planned correctly, the birth of your child should bring nothing but happiness to your home, and the correct financial planning will ensure that you can provide for your son or daughter.
Starting a Business
Owning your own business can be an excellent first step in attaining financial freedom, but there are risks involved too. By ensuring that your personal finances are in shape before you start your business, you’ll be more likely to succeed in the long term.