Like many things in life, our financial situations are often unpredictable. Unexpected events, illness, and changes in your career could send shockwaves through your monthly budget – but there are ways to prepare for financial challenges and see them through.
Here are five of the most common financial challenges you may face, and some strategies for overcoming them.
Financial challenge #1: Losing your job
When your income is stable it’s easy to talk about budgeting and financial planning – but what would happen if you lost your major source of income? In today’s economy, many skilled and hardworking people around the world have found themselves unemployed through no fault of their own – but losing your job doesn’t mean you have to lose everything else.
- At Northwood we advise our clients on unemployment and disability cover that protect working people against the financial impact of job losses.
- We also work with our clients to create an emergency savings fund to cover at least six months’ salary – this could be a life saver for someone who loses their job
Financial challenge #2: Starting a family
If all this talk about job losses has put a damper on your mood, let’s move on to a much happier subject – getting married and starting a family.
The excitement that a couple feels when they find out that a baby is on the way is hard to describe – but if you’ve experienced it, you’ll know exactly how it can sweep you away. From planning nurseries to choosing baby names and imagining your new family life, you may just have overlooked one thing – the financial responsibilities that a family can bring.
Fortunately, it’s easy to plan for your new family in advance. Northwood works with its clients to estimate the monthly costs of looking after each child, as well as the extra saving, budgeting, and investing that’s required to plan for your children’s education and give them a solid financial start in life.
Financial challenge #3: Debt
So far, we’ve covered two types of financial challenges that tend to take us by surprise – now let’s take a look at something that builds up over time. Debt is the single biggest obstacle to saving and accumulating wealth – and yet today’s world is drowning in it.
Avoiding debt is all about budgeting and living within your means – two things that are easier said than done. Northwood works with clients to see the value in net worth, not in items purchased with borrowed money.
Financial challenge #4: Illness
Like losing your job, falling ill with a serious condition could result in permanent disability or your being unable to work for a long time. By advising our clients on disability and income replacement cover, we help them to plan for something with life-changing consequences that few people want to think about .
Financial challenge #5: Retirement
Since retirement is supposed to be a reward after decades of hard work, it seems strange to talk about retirement as a financial challenge to be overcome – but that’s only the case if you have enough income to retire on.
Retirement planning is essential if you want to guarantee your quality of life at an age when you may not be able to work. Through our planning sessions and constant monitoring of your investment portfolio, Northwood will help you to plan effectively for your golden years.
Let us help you to meet your challenges
If you have a financial challenge that you’d like to face head-on, contact Northwood today.